Second-hand property transactions in Shenzhen dropped 36 percent in June compared to the figure in May, dampened by the new State policies to rein in surging house prices.

According to Shihua real estate consultancy, the city's second-largest property agent, since the new policies became effective in June, both potential buyers and sellers have chosen to postpone transactions. Many property owners and market analysts think that the new policies could only have short-term effects on the property market and the property prices will begin to rise again soon. As a result, most property owners will not try to sell apartments at lower prices.

Statistics from a non-official second-hand property trade Web site showed that the average posted price of second-hand properties in June was 8,171 yuan per square meter, about 3 percent higher than in May. But the trade volume had dropped by one-third.

Shihua also found that the property leasing market was hot in June. The trade volume in the leasing market was 28 percent more than it was in May.

Editor: Yan