PROPERTY prices in Shenzhen fell to 13,618.42 yuan (US$1,946) per square meter on average in March, a one-year low, according to a report released by the housing authority Monday.

The report said the average property price in March was down 16.53 percent compared to February, when the average price was 16,314.58 yuan per square meter. Property prices last month dropped to the same level of March 2007, while February prices saw an increase of 12.3 percent over the same month last year.

Property prices have been on the rise in the past few months, but at a slower pace, despite the real estate market slowing down since the latter half of last year, with significant drops in the number of transactions.

Local developers felt the pinch as the number of apartments in stock continued to increase, and had to lower prices to boost sales. The move has paid off. Transactions in March were up 194.57 percent compared to February sales. But the transaction volume was insignificant compared to the same period last year, when speculation in the property sector pushed up prices greatly.

Most of the purchases in March were by homebuyers looking for apartments for their own use, said Wang Fengbo, vice director at the Shenzhen Real Estate Research Center, adding that demand for apartments was still high in Shenzhen.

Wang said many Shenzhen residents who wanted to buy an apartment were choosing to wait and see after the property market began to slow down last year.

(Wei Jie)