Chinese authorities issued tough regulations concerning the country's housing market in early October. How have the rules affected prices and sales one month on?

The housing market in Shenzhen is feeling the late-autumn chill one month into the curbs. Brokers say both customer inquiries and sales have dwindled. Developers are on the defense.

"Developers don't have major moves since the regulation curbs took effect. Some sales centers have suspended their businesses. They are in a wait and see mode, while watching the market sentiment before making any decisions." said He Qianru,research manager of Midland Realty.

New homes prices in Shenzhen are pressed to 55 thousand yuan per square meter, down nearly 10 percent from last month. Pre-owned home sales stood at 527 thousand square meters, shrinking 16 percent.

Residents recognize the price drops, but are not ready to jump in.  Ms. Yan has been working in Shenzhen for five years. She said that even though prices have eased, the current levels are still beyond her abilities, discouraging her from buying.

"The current price is too high, I don't know if the prices could stabilize at the 50 thousand yuan level." Ms.Yan, Shenzhen resident said.

The National Bureau of Statistics says new home prices in Shenzhen now rank the lowest among its peer Chinese cities, showing the immediate changes after the regulation curbs. But experts say the decline may stop somewhere.

"Prices will go down, but not plunge, nor decline sharply. I don't think the regulation curb will end for the time being, maybe last for next year. In this case, the prices will go down. "said Song Ding, real estate research DIR. of China Development Institute.

Market supply is another way to adjust prices. The local government has decided to use around two and half square kilometers of land in the next five years to build affordable housing. And many of the units will be built near major transport lines.