Fresh data shows that the number of property transactions and house prices in Shenzhen fell sharply in July. That was after the city had seen real estate prices sky-rocket to record levels earlier this year.

July's plunge has some analysts wondering if the area's real estate bubble is starting to burst while others think sales will revive in September and October.

Property prices in Shenzhen dropped over 8 percent in July from June. That was the sharpest month on month fall in four years.

"We've seen the number of properties on sale for 60,000 yuan per square meter and more decreased in July by about 20 percent," said Wang Fei, manager of Research Center, Centraline.

Transactions also decreased in July with less than 3,000 new apartments sold. That was down more than 50 percent from a year ago.

However, some experts say prices won't continue to fall.

"I think the price trend for the next few months will be lingering at high levels," said Song Ding, deputy director of China Urban Economic Expert Comm.

Others say the real estate market has gotten stuck in a stalemate as both buyers and owners maintain a wait and see attitude. Analysts don't expect to see additional price rises in Shenzhen or elsewhere as statistics show a 7-percent drop in properties sold across China in July.