Tightened rules cool home sales

Trade volume drops in Shanghai, Shenzhen; some deals fall through after buyers disqualified

Homebuying regulations that took effect on March 25 in Shanghai and Shenzhen turned out to be quick fixes for the overheated residential markets, as trade volume shrank sharply in both cities, according to data from property agencies.

Daily trade volume of new homes in Shanghai fell from 103,000 square meters in the week ending on March 27 to 45,000 sq m in the week ending on April 3 - a 56 percent week-on-week drop, according to property research agency China Real Estate Information Corp.