Guangzhou's real estate market is seeing a rather curious situation recently, for its monthly sales of June increased drastically by 70%, while the average price downed 9.6%, according to the statistics released by the municipal Land and House Administration.

After a 5-month long depression, the city's house market finally reaches a turning point: the total sales volume of all property agencies in June reaches 768.6 thousand square meters, with 52.4% increase compared to the previous month. Also it is the highest since January this year. The turnover of the first-hand market, especially, soared by 70%.

The demands rise while the prices are declining. The average price for first-hand properties dropped to 9569 yuan per square meter, while in the previous two months that figure repeatedly exceeded 10,000.

While the government views it as a positive result of the macro-economic regulations, demonstrating the government's efforts to provide the people affordable accommodations, many real estate suppliers and brokers are deeply worried and their
appeals for the administration to "save the market" are prevailing.

It has been widely recognized that the increase in the supply of low-price apartments which now make up 9.6% of all sales, is the major force bringing down the prices.

This also demonstrates the government's resolution of ensuring the general public can afford decent accommodations.

However, that may not be the whole of the situation. Recently the National Development and Reform Commission also released a series of figures showing that the nation's overall price level actually increased 8.2% in June.

As the city's statistics of house price can be influenced by factors as location and variety of agencies, experts believe that the figure provided by the states authority, is closer to the real picture.