Shanghai residences will be in oversupply in the next few years as residents will only need up to 24 million square meters a year, while 33 million square meters of new residences may enter the market annually, China News Service quoted a survey as saying today.

In some neighborhoods, the amount of unsold residences accounts for 40 percent now.

Property sales tumbled last month by 35.6 percent to 16,245 units from a month earlier. This was the lowest in the first half of this year except in February, as many potential buyers and developers took a wait-and-see type of attitude because of the uncertainty of when and how the local government will implement new state regulations.

(For more biz stories, please visit Industry Updates)