SALES of new homes plunged in Shanghai last month as the local government’s tightening measures to cool the overheated market proved effective.

The area of new homes sold, excluding government-funded affordable housing, dived 56.1 percent from March to 972,000 square meters in April, Shanghai Centaline Property Consultants Ltd said in a report released yesterday.

“The latest batch of rein-in measures has left an immediate impact on the local housing market since its implementation became effective on March 25,” said Lu Wenxi, senior research manager at Shanghai Centaline. “Buyers’ interest has been seriously damped with medium to high-end segments suffering the most notable setback.”