(Yicai) June 3 -- China’s 100 leading developers sold CNY322.4 billion (USD44.5 billion) of residential property last month, up 3.4 percent from April, as the government took further steps to boost market confidence and buoy supply and demand in the sector.

Huafa Industrial Share and C&D Real Estate topped the rankings, with sales that surged 180 percent and 40 percent, respectively, statistics from CRIC Research Center, a real estate research institute, showed on May 31.

In the five months ended May 31, sales by the top 100 developers fell by more than 40 percent on an annual basis, which was 2.5 percentage points better than a year earlier. The year-on-year decline has narrowed for four straight months.

On May 17, China’s central bank abolished the floor on mortgage rates, lowered the minimum downpayment to 15 percent on first homes and 25 percent on second homes, and cut individual housing provident fund rates by 0.25 percentage point. It also set up a CNY300 billion (USD41.4 billion) relending facility for government-subsidized housing projects.

Sales have picked up since then, but not as much as expected, a source at one builder told Yicai. Most of the growth was due to buyers who had been hesitant to make a purchase until the latest policies came out, the person added.

Builders also have been stepping up their marketing efforts and upgrading their products to lift sales. The second stage of a housing project in Shanghai's Pudong district has better ancillary facilities than the first stage, but sells at the same price, Yicai learned.

Demand will continue with fluctuations, and developers should help clients buy suitable homes while ensuring product quality and supporting facilities in response to a potential market downturn, said the head of marketing at a state-owned builder in East China.

Editor: Martin Kadiev