Fewer people are buying new homes in Shanghai, but those who are buying are paying much more. Sales for the first 12 days of September are down significantly from the same period over the past 2 years.

Sales of new homes fell to 198 thousand square meters in early September, half the volume sold during the same period last year, and one third of the year before that. But the average price rose 12.5 percent to nearly 25 thousand per square meter. Those numbers don't include government subsidized affordable housing programs.

The situation was similar in the second-hand housing market. Many real estate agents say fewer people are interested in buying homes. Industry insiders attribute that to a series of government measures, including purchase restrictions and higher minimum down payment requirements.