Transaction volumes in first-tier cities exceeded the weekly average of 2011 by 14% and 46 cities report home price declines in March.

Further price cuts and measures to help first-time buyers tempted homebuyers back into the market in March, reinforcing recent signs of a transaction rebound.

Despite the slow progress of social housing projects in several cities and some creative accounting, on-the-ground evidence points to a greater buildout this year than in 2011.

Property prices in almost two-thirds of major Chinese cities slid for the fifth consecutive month in February, according to figures released by the National Bureau of Statistics (NBS) on March 18. Meanwhile, in his annual address to the National People’s Congress earlier this month, Premier Wen Jiabao stressed that the government would not relax its home purchase restrictions, as house prices remain too high. Domestic commentators have been attempting to divine where the market is heading.

Plans by leading Chinese developers to jointly launch a real estate fund is the latest sign of a less traditional approach to raising cash among mainland developers squeezed by a government-enforced deduction of bank loans which looks set to continue through 2012.

Summary: A bond issue in mid-March in Singapore by KWG (1813:HKG), a mainland property developer, has raised concerns over the financial health of weaker companies in the sector. KWG had to offer a coupon of 13.25% to attract buyers to the $400m issue maturing in 2017, a sign that investors took as signalling that some Chinese developers are willing to pay handsomely for funding offshore because little is available at home. KWG was not alone in sparking concern; RenHe was downgraded one not to B+ by S&P earlier this month amid concerns over the developer’s cash flow. Agile (3383:HKG) issued $700m in bonds maturing 2017 at a coupon of 9.875%, another indication of investor wariness.

China Overseas Land & Investment (COLI) recorded sales of Rmb10.69bn in February, up 209% YoY.

The 7.5% GDP growth target outlined by Chinese premier Wen Jiabao in his annual address to the National People’s Congress is in line with previous official predictions of slower growth in 2012