According to China Index Academy, a realty information service provider, 20 cities it monitors in China experienced an obvious increase in sales revenue for new homes between July 16 and July 22.

A total of 75 deals were completed in those 20 cities, up more than 30 percent compared to the previous week.

Sales of commercial residential properties in Guangdong province started to recover in the second quarter of this year, increasing month-by-month both in terms of floor space and revenue, according to a report released by the Guangdong Real Estate Association on Tuesday.

Developers have been offering bargains to boost sales, also due to easing monetary and credit policies, according to the report.

The property measure increased 1 percent on Tuesday morning, the biggest gain among five industry groups on the benchmark index.

China Vanke Co, the biggest listed developer on mainland exchanges, climbed 1.3 percent to 9.33 yuan in Shenzhen.

"Our company is planning to launch two new projects in the second half of the year as we believe that the property market is recovering quickly with more demand from potential purchasers," said Hu Bin, president of Zhongzhou International Holding Group, a real estate developer in Shanghai.

Bad loan risks

Chinese regulators are vigilant against potential risks regarding bank loans to the property sector following government curbs that have sapped the market and stripped developers of cash, local media reported on Tuesday.

The authorities are concerned about the influence of property market changes on bank assets and will rigorously control risks in real estate financing, Shanghai Securities News quoted an unidentified financial regulator as saying.

About half of China's major property companies have seen their debt ratios exceed 60 percent and most listed developers have a negative operating cash flow, which may increase risks in bank lending for property development and other related industries, the official noted.

Some developers have also raised funds through real estate private equity funds and real estate investment trusts, as well as from overseas markets and the domestic private lending market, and will face significant repayment pressures.

However, the official told the newspaper that the country's banking regulator is unlikely to suspend property-related loans or real estate investment trust operations.

China saw outstanding loans for property development and mortgages rise 10.3 percent year-on-year to 11.32 trillion yuan at the end of June, according to central bank data.

The growth was 0.2 percentage points higher than in the previous quarter. It marked the first quarter of growth after eight consecutive quarters of declines, which analysts attributed to lower borrowing costs and a looser monetary supply.

China's central bank cut benchmark interest rates for the first time since December 2008 in June and further cut the rates earlier this month to support the softening economy.

Diminishing revenues from land sales may result in more risks for bank loans to financing vehicles, or companies set up by local governments to raise funds and bypass restrictions on direct government financing, the anonymous financial regulator warned.

Xinhua and Bloomberg contributed to this story.

Contact the writers at yuran@chinadaily.com.cn and liwenfang@chinadaily.com.cn