Shenzhen property sales boom in May

Turning specifically to Shenzhen, the property market saw booming sales in May, with monthly transaction volumes surging past ten billion yuan for the first time this year. The average price for new commercial housing now stands at 12.9 thousand yuan per square meter, that's up 600 yuan from April. Meanwhile, transaction volumes soared 200 percent from a year ago, to hit 776 thousand square meters.

Signs of a rebound have prompted many developers to raise their prices. The price of a unit per square meter in Nanshan district went up by as much as 4,000 thousand yuan in a single day. While unsold units have dropped from 60 to 40 thousand.

Song Ding, Researcher of China Development Institute, said, "The supply of land has hit more normal levels. Developers are picking up on stronger sentiment, and have begun to acquire land. But the real effect will not be seen immediately. This is usually a one to two year cycle. Effects will be more apparent in one or two years."