Real estate prices and sales in the major cities of China's southern pearl delta region, including Shenzhen and Guangzhou, stopped falling in March.

Statistics released by a Guangzhou property watchdog say Guangzhou's average housing price in March stood at some 9,300 yuan or about 1,300 US dollars per square meter. It represents a 0.1% rise over February, while sales volume rose by 60%.

In Beijing, housing prices and sales have continued their robust growth. In March alone, Beijing experienced an increase of almost 18% in newly added residential apartments. The average housing price within the city's 4th ring road hit an unprecedented 16,935 Yuan or about 2,400 US dollars.

Nie Meisheng is a senior official with the All-China Federation of Industry and Commerce.

"I think that this is a signal. After the first quarter, the skeptical attitude about the uncertainties in the property market will be eased. I believe that in the coming few months, the property market in China's major cities like Beijing, Shanghai and Guangzhou will develop on a modest scale."

Nie Meisheng also warns investors in China's secondary cities against investing heavily in their property markets in order to avoid the drastic ups and downs.