A project called Shoucheng Huijingwan in Beijing's Pinggu district, for instance, set its price at 12,000 yuan ($1,945) per square meter, just 1,000 yuan more than a nearby subsidized housing project.

Slumping property sales are spurring the central government to do what it can to help reduce inventories and ease policy where possible so the market can play a decisive role.

"Solving the inventory problem is critical in maintaining the sound development of China's real estate industry," Minister of Housing and Urban-Rural Development Chen Zhenggao told a symposium earlier this month, according to 21cbh.com, a business news website.

However, in the view of Wang Tao, economist with UBS AG, the government remains reluctant to ease property policies significantly.

"Allowing a serious adjustment in property and related heavy industry sectors alongside a cleanup of the financial sector may be good for China's long-term economic health, but the adjustment could be very painful in the short term. Therefore, it remains to be seen how weak a level of growth the government can tolerate, especially if the current intensity of policy support turns out to be insufficient," said Wang.

Jinan opens doors to property buyers	Shanghai home prices buck trend