New home prices in Shenzhen were up 41 percent in July, but the city saw a decline in property transactions in July from June. Does it indicate a turning point for Shenzhen's property market? CCTV's reporter Ge Yunfei went to the southern Chinese city to find out.

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

Experts say the real estate market is experiencing growth difficulties.

Tan Huafei, a mortgage manager, said, “Now the property market has stepped into a period of stability. The market is still digesting last year’s sharp growth, so both buyers and owners maintain a wait and see attitude.”

But for the people living in the city, they hope for prices to remain stable.

A Shenzhen resident said, “I've just bought a second-hand house for the marriage. I know the prices are very expensive right now, even with the help of my family. I think the property price will remain stable for some time. ”

“The current price is already too high for young people. I wouldn’t dare to dream of buying a house in Shenzhen, ” said a resident.

“It seems like the plunge of the housing prices in July may indicate a turning point for Shenzhen’s property market, but experts say that booming still continues in the second-hand home market,” Ge Yunfei said.

Dean of Lianjia Real Estate research institution of Shenzhen, Xiao Xiaoping, said, “The recent price plunge doesn’t reflect the real situation of Shenzen’s property market. The sale of new houses only accounts for 8.2% of the market. According to our data, the sales of apartments have increased over the past three months.”

Tian Yong from a real estate agent said, “Thanks to the tightening policy in March, the market cooled down a bit in the second quarter. But now I can see that more and more clients are trying to buy houses. The sales will revive in September and October. ”

“Shenzhen has over 13 million people and the number is still increasing. But we only have 16.2 million houses on the market. There will always be a great gap between the supply and demand. In five years, housing prices in Shenzhen can catch up with that of Hong Kong," said Xiao Xiaoping.

But still, experts say that predictions still largely depend on the future tightening of policies by the government.