(Yicai) Nov. 1 -- On-year sales of China's top 100 developers increased for the first time this year last month as the latest policy measures are kicking in, according to a third-party consultancy.

The 100 biggest builders logged a 7.1 percent year-over-year boost in sales last month, bagging CNY435.5 billion (USD61.1 billion), based on the latest data from China Real Estate Information. Sales surged by 73 percent from the previous month.

That marks a turning point. From January to October, sales dropped by 33 percent to CNY3.07 trillion (USD431 billion), though the decline moderated from a nearly 37 percent drop reported for the first nine months as the recovery gains momentum.

Demand was particularly strong in China's four first-tier cities. Beijing, Shanghai, Guangzhou, and Shenzhen saw a 65 percent month-on-month increase in sales area in October and a 22 percent year-over-year increase, according to China Index Academy. In Guangzhou and Shenzhen, sales areas almost doubled from September levels.

Shanghai and Shenzhen reported the highest monthly new-home sales volumes over the past 12 months, with Guangzhou logging its second-highest transactions during the same period, according to property consultancy E-House. Shenzhen’s transaction numbers more than doubled from September, while Beijing recorded a more than 35 percent increase.

New policies introduced at the end of September helped boost market confidence, a sales manager at Poly Property Group's luxury project in Shanghai’s downtown Lujiazui area told Yicai. Big clients have shown renewed interest, with some signing contracts for multiple properties immediately after viewing, the manager noted.

Most properties were sold within seven days of the viewing, generating around CNY2 billion (USD280.8 million) in sales for the project, the same source said. The highest transaction price reached nearly CNY100 million (USD14 million) for a single property.

However, the sales boost has yet to reach smaller cities. Recovery may take longer in second and third-tier cities, noted a marketing manager at a defaulted property developer. Sales are still weak in the eastern second-tier cities of Fuzhou and Nanchang, as well as in the third-tier city of Yichun.

Industry experts remain cautious about future market trends. The recovery momentum in first-tier property markets began to slow by late October, according to Zhang Bo, research director at 58 Anjuke. While the market may not continue to heat up as it did in October, it is expected to perform better than in August and September.

A clear signal of the bottom is when sales prices stop declining and stabilize, Yu Xiaoyu, general manager at a research center of E-House, pointed out. However, this has yet to occur for both new and pre-owned homes, she added.

Looking ahead to the fourth quarter, Zhang from 58 Anjuke predicted that property prices will likely remain low. The first signs of stability could emerge in some major cities around the Labor Day holiday in May, he added.

Editors: Tang Shihua, Emmi Laine