Hu Yuanyuan | Beijing | January 31

China Daily - China's major cities saw a drop in property sales during the Lunar New Year holiday, indicating a further correction in the real estate market.

SouFun Holdings Ltd, China's largest property website, said on Monday that among the 29 cities it monitors, 27 experienced a drop in property transactions.

Property sales in Guangzhou plunged by 81.5 percent year-on-year. Those in Shanghai and Shenzhen also fell by more than 30 percent on a yearly basis, according to SouFun. Statistics for Beijing are not available because the capital's website on property transactions was closed during the festival.

Four second-tier cities - Jinan, Wuxi, Harbin and Ningbo - saw no transactions at all, SouFun statistics showed.

According to Chen Guang, an analyst with Century 21 China, this Lunar New Year was the bleakest period since 2004.

"It will not be surprising to see a further drop in property transactions because there is no sign that restrictive policies will be loosened this year. Some property developers have even shut down sales offices," said Chen.