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Weak sentiment dampens sales of new houses
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NEW home sales fell for the second straight month in Shanghai in August amid weak sentiment.
The sales of new homes, excluding government-funded affordable housing, fell 6.7 percent from July to 654,000 square meters, the lowest volume in three months, Shanghai Deovolente Realty Co said in a report released yesterday.
“Despite a cooler-than-expected weather in August, most homeseekers continued to take a ‘wait-and-see’ attitude as they hope for significant price cuts by developers,” said Lu Qilin, a Deovolente researcher.
But few developers have offered attractive discounts — a major reason for the sluggish sales, Lu said.
The average cost of a new home fell 0.3 percent from July to 26,290 yuan (US$4,276) per square meter.
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