BEIJING - An agreement to build a strategic partnership between China Vanke and Dalian Wanda Group marks a new era for alliances among property developers.

Rising land prices and increasing financing costs are wearing developers' profits thin. The alliance will help increase their price bargaining power and mitigate investment risks, the China Securities Journal reported on Saturday.

Meanwhile, the alliance will also boost coordination, allowing them to fully leverage their respective strengths and help each other upgrade their businesses, the report said.

The two companies said their cooperation will focus on land acquisition and joint project development, with Vanke mainly focusing on residential development and Wanda on commercial development.

China Vanke is the country's largest residential real estate developer while Wanda is a leading commercial real estate conglomerate.

The report said the two companies' partnership signed this week could be an exemplary case for others to follow in the future.

The Chinese property market started to cool last year after years of huge sales ceased and investment slowed.

However, three rounds of interest rate cuts since November by the central bank are helping buyers reduce home purchase costs and leading to a sales recovery. The report said 40 surveyed cities saw home sales volume rise 9 percent year on year in April.

The National Bureau of Statistics is scheduled to release latest home price data for 70 cities on Monday.