Apartment prices in the city have fallen by 7.8 percent from last month as the supply of residential properties exceeded the demand for the first time since June this year, with a ratio of one unit on sale to 0.99 units wanted, the Shanghai Morning Post reported today.
The average price for apartments fell to 10,266 yuan (US$1368.8) a square meter in the second week of October, the report said, citing the E-House China Institute.
The new supply of properties, including apartments, offices and garages, in the past week hit 785,900 square meters, 232.4 percent higher than the previous week, said the E-House China Institute affiliated with the property developer E-House Co.
Analysts attributed the trend to recent policies, such as raising minimum down payments for second home buyers and forcing developers to sell completed projects as soon as possible.
These policies will further boost the supply in the rest of this month, analysts added.
Shanghai's supply of residential properties dropped below six million square meters on October 9, its lowest level since the second half of 2005.