Average cost of new homes fell to the lowest in Shanghai in 18 weeks amid a structural change while purchasing activities also dropped notably, according to latest market research.

New homes, excluding government-subsidized affordable housing, were sold at an average 20,808 yuan (US$3,284) per square meter last week, down 2.4 percent from the previous seven-day period, Shanghai Deovolente Realty Co said today. The sales volume of new homes, meanwhile, plunged 22.1 percent from a week earlier to 166,400 square meters.

"Mid-range and low-end properties accounted for the majority of purchases last week and therefore dragged down the average price to the lowest in about four months," said Lu Qilin, a Deovolente researcher. "Buying sentiment also seemed very sluggish with only three projects registering sales of more than 25 units during the whole week."

Only 17 houses costing 50,000 yuan per square meter and above were sold across the city last week, down by 20 from the previous seven-day period. And sales of new homes with a price tag of more than 10 million yuan dived nearly 40 percent week-on-week to 28 units, according to a separate report released today by major realty chain Century 21 China Real Estate.