SHANGHAI'S new home sales fell to a five-week low - the lowest over the past six years - during the seven-day period ended Sunday as potential buyers continued with their wait-and-see sentiment, according to a market research released yesterday.

Sales of new homes, excluding affordable housing, tumbled 40 percent from a week earlier to 85,400 square meters in the city, Shanghai Deovolente Realty Co said.

"It was the lowest if we track same-period volume registered over the past six years, an indication of really sluggish buying momentum regardless of the National Day holiday factor," said Lu Qilin, a researcher at Deovolente. "The 'deadlock' will probably remain unless more real estate developers start to offer price cuts."

A good example of a price cut which boosted sales was a Gemdale Corp project in Dachang in northern Baoshan District, which became the best-selling project in the city last week.

With an average price of 18,029 yuan per square meter, or nearly 4,000 yuan cheaper than its average price in August, the project sold 86 units, or 7,701 square meters, during the seven-day period, Deovolente data showed.

Citywide, the average price of new homes rose 4.2 percent weekly to 22,777 yuan (US$3,581) per square meter amid comparatively strong sales of luxury properties.