The property market has been falling since the last quarter of 2007, but this October it plunged into bear territory.

It's a similar story all across the nation. Guangdong, Shenzhen and Shanghai have all seen price cuts in the real estate sector. According to a survey conducted by the central bank, less than ten percent of consumers in Shanghai and Beijing are willing to buy a house in the next three months, the lowest level in a decade.

Insiders believe the housing market is correcting downward after several boom years. Some are already expecting a ten percent drop in prices next year.

Li Wenjie, the deputy director of Beijing Agency Industrial Assoc., said, "The correction will last until next year. Home prices will likely to return to the level seen in 2006 or 2005. That would fall in line with consumers' real purchasing power and economic growth. "

But the slide in home sales is also raising worries, especially at a time when exports are falling and GDP growth is slowing.

Municipal governments in Nanjing and Shanghai are among the first to take action. New policies including canceling restrictions on buying property, reducing taxes, and extending individual mortgages have been enacted. The Ministry of Housing and Urban-Rural Development has also submitted new initiatives to the State Council.

But so far, the measures to stimulate consumption are having a limited effect. Experts say home buyers are likely to wait for cheaper deals when property prices bottom out.

(CCTV October 17, 2008)