March marked a watershed moment for China's real estate market during the first half of this year, National Business Daily reported citing a report from Beike Institute.

According to the report, in the first six months, China's real estate market showed signs of rebound in some cities, with the transaction amount of second-hand home rising more than 50 percent from the second half of last year.

Owing to relaxed policy control, lower mortgage rate and improved market expectations, the second-hand home market showed signs of rebound, Xu Xiaole, chief analyst of Beike Institute said.

However, the rebound didn't continue to the second quarter, the report said.

Between April and June, credit and developers financing channels began to tighten again. Control policies carried out by some cities also affected market expectations. During the second quarter, the average monthly transaction amount fell 21.5 percent from March.

Take Chengdu for an example, during the first half of this year, the transaction amount of second-hand home rose 34 percent year-on-year, ranking first among the 14 major cities.

In the first four months, the average price of second-hand home saw modest gains in the city, before it went down during the next two months. In June, the price fell 5.8 percent to 14,569 yuan ($2,118) per square meter.

The policy on the real estate sector will continue to be stable in the future, the report said.

Last month, the Ministry of Housing and Urban-Rural Development warned four Chinese cities Foshan, Suzhou, Dalian and Nanning over price rises in the past three month. Earlier, six other cities were also warned over similar reasons.

Considering the current market is still under strict control, the second-hand home and some new home markets is expected to face the issue of "new inventory," Xu said.

The inventories of the second-hand home market began to rise after the first quarter's rebound, as well as new home inventory in some cities. In May, the new home inventory in Ningbo, Beijing, Fuzhou, Wuhan, Qingdao, and Xiamen rose 171.7 percent, 61.7 percent, 53.5 percent, 40.3 percent, 37 percent, and 31.6 percent, respectively.

Xu said the central government will put more efforts to prevent systematic financial risk, and keep the prudent monetary policy and proactive fiscal policy.

The market is highly sensitive to the policy, Xu said, adding that in general, differentiated policies based on local conditions will be the keynote during the second half of this year and in longer term.