— This is the script of CNBC's news report for China's CCTV on June 18, Thursday.
Welcome to CNBC Business Daily, I'm Qian Chen.
The price of new homes in China fell 5.7 percent year-on-year in May, the country's National Bureau of Statistics reported on Thursday, but reversed month-on-month declines for the first time in more than a year.
Prices rose by 0.2 per cent month-on-month, the first positive reading since April 2014, with a broad pick-up in month-on-month gains across China's 70 major cities.
The May year-on-year fall was also slightly less steep than in April, when prices were down 6.1 percent by the same measure.
Carol Wu, Director at DBS Vickers Securities, told CNBC that we might be able to see a recovery in China's property market.
[Carol Wu, Director of DBS Vickers] "So that's somehow indicate to us that property price in China is stabilizing, and we are starting to observe signs of recovery. We actually expect, in the second half, we are gonna see more cities to see price uptrend with inventory start to fall."
The index has been deflating for nine months now, year-on-year, but on a monthly basis there are signs of a pick-up: of the 70 cities tracked, 41 recorded falls last month, versus 47 in April.
Prices were down 2.3 per cent in Shanghai and Beijing in May, compared with 4.7 percent and 3.2 percent respectively a month earlier.
Among the 70 cities, Shenzhen was the top performer, recording the second consecutive month of year-on-year rebound, up 7.5 percent following a 0.7 percent rise.
Carol Wu said, Tier 1cities like Shanghai and Beijing and Shenzhen will have higher growth potential than a lot of Tier 2 and Tier 3 cities, given the potential under supply situation in these three cities.
In addition, real estate investment growth continued to slow in the first five months of 2015 to the lowest since May 2009, Reuters reported on Thursday, with inventory levels remaining high in lower-tier cities, despite the signs of overheating recurring in Shenzhen.
David Ji, Head of Research & Consultancy of KnightFrank, said it might be the time for real home buyers to return to the market.
[David Ji, Head of Research & Consultancy, Greater China , KnightFrank] "After two years of macro control, most of the speculators are probably leaving the market for now and leaving the genuine home buyers demand in place."
"Because the price has been falling for some time now, and the market is expecting furthur falls of the housing prices. So somehow to reverse the trend, the government has released several easing policies, including on the 30th of March, the relax of the mortgage requirements. So this has already pumped some of the buyers back into the market."
China's central bank has moved to stimulate the property market, cutting interest rates in May and attempting to boost lending by reducing the amount of cash banks have to keep in reserve.
Wee Liat Lee, managing director, regional head of property research at BNP Paribas, told CNBC that he was pretty sure the Chinese property market had bottomed out, but that the recovery was dual-paced.
[Wee Liat Lee, BNP Paribas, MD] "We are seeing developers across the board cutting new construction starts in the city. This is a long term thing to work out, but we have already started the self-correction mechanism."
"I think what the government needs to see is more activities. So they need the construction starts to go back to the positive territory, and No.2 is that they need to see new landfields are actually going back to positive territory as well."
CNBC's Qian Chen, reporting from Singapore.