The tightening of mortgage lending and a series of measures to cool the real estate market have made housing transactions shrink in many Chinese cities.

The pre-owned housing market in Beijing has begun to adjust since January. Data shows the transaction volume last month was down over 60 percent from a month earlier, with the average price falling nearly three percent.

Other big cities have also seen transaction volume declining. In Shanghai, sales of new properties fell by half in January compared with the previous month. The average price was down slightly by more than one percent.

Analysts say most potential buyers are holding off. The shrinking transaction volume will affect prices. Some new properties in suburban areas are being promoted with discounts.

In Shenzhen, the number of pre-owned home sale fell in January by more than 60 percent from December, the first decline since March. Average prices also dropped by more than eight percent.

Recent policies to cool the real estate market are having an taken effect.

Real estate agent, Property agency, said, "Many potential buyers hesitated to purchase due to the policy adjustments. But property owners are still waiting for price hikes."

However, some analysts say January is traditionally an off season for the property market and transaction volume will remain stable.

Real estate analyst Xiao Xiaoping said, "I think the housing market as a whole will keep stable this year, with prices not move a lot. In Shenzhen, pre-owned properties will remain around 8 thousand units per month."

The latest figures show that in Shenzhen, pre-owned property transaction volume rebounded last week. Analyst say this is because that some owners have cut prices.