Real estate standoff in Shanghai

Home sales in Shanghai have slowed, with sellers and buyers stuck in a standoff. Prices are continuing to rise, but customers say they won't buy until the costs come down.

It might not be the weekend, but the annual Shanghai Spring Real Estate Exhibition has still attracted a lot of visitors.

It's often viewed as the barometer of the city's housing market for the whole year.

This year, there are 200 developers showing more than 300 projects. Most of them becoming increasingly expensive.

Sales representative said, "We raised prices by 2 thousand yuan to 14 thousand yuan per square meter."

Sales representative said, "When we sold our first building in September 2009, the price was 15 thousand yuan. Now it is 19 thousand yuan."

Prospective buyers are shocked by the increases.

Shanghai resident said, "Even at Zhoupu （周浦）in outer ring road, houses are selling at 15 thousand to 17 thousand."

But with a full fair to back their claims, developers say the market is still strong.

Sales representative said, "Most clients have strong desire for buying. They have necessary needs for housing."

Buyers say they're only looking... and are keeping their cash close to their chest.

Shanghai resident said, "I do not plan to buy."

Shanghai resident said, "The price is not affordable."

The standoff is reflected in March sales figures. Developers refused to slash prices in Shanghai, where the cost of new homes reached another record high... 24 thousand yuan. The number of sales dropped in most locations, except downtown.