So far, the average home price has yet to budge. It rose by 18.86 percent over a year ago to hit 26,687 yuan ($4,273) per square meter.

But analysts pointed out this was partly due to more high-end projects entering the market.

Of the 17 projects that are expected to make their market debut in July, more than half are medium- to high-end projects, according to Yahao Real Estate Service Corp.

A market that's not such a hot property

Realty price swings may pose short-term risks

The secondhand home picture in Beijing is more indicative of the current market sentiment. The average price of secondhand home transactions declined 4.4 percent in June month-on-month to reach 27,311 yuan per sq m. Turnover has declined for three consecutive three months, but the decline rate narrowed in June, according to Homelink Beijing, a real estate brokerage.

The cooling market has in turn dampened the land market. Land turnover dropped significantly in the second quarter, as total sale revenues for the period fell to 35 billion yuan from 74.9 billion yuan recorded in the first quarter, according to Yahao.

Thirty-three parcels were sold in the first quarter, while the number dropped to 20 in the second quarter, Yahao said.

Thanks to a strong first-quarter performance, land sale value in the first half still surged by 71 percent over a year earlier to hit 109.9 billion yuan, a record in the past 10 years.

Mao Daqing, executive vice-president of China Vanke Co Ltd, the country's largest property developer, remained confident, saying: "I don't think land prices in Beijing will drop significantly. A defining characteristic of the city's land market is its extreme short supply. Developers will jump in to bid on land when it becomes available."

Nationally, Beijing saw the biggest slump rate in housing sales second only to eastern Hangzhou, capital of Zhejiang province, which saw a decrease of 52.85 percent over a year ago, according to Centaline.