A serious dry-up in home buyers' confidence, along with oversupply, has contributed to current property downturn in China, Ding said.

In the week-long holiday, the number of transactions brokered by E-House Holding doubled that of the previous week, and was close to that in 2013, he said.

A rising confidence is expected to unleash cumulative demand from potential home buyers in current quarter ending in December, Ding said.

Nanjing, capital of east China's Jiangsu Province which had lifted home purchase restriction on Sept. 21, reported total sales of 2,812 house units in the week-long holiday, a 47-percent increase year-on-year and a record high.

Despite the upbeat sales, the trend of falling house prices won't be reversed in the near future, according to Chen Xiaotian, deputy secretary-general of the China Real Estate Association.

Based on the cycle of the property industry, overall house prices are likely to continue falling for the rest of this year, and prices could go up in the first half of 2015, Chen said.

Yang Hongxu, director of the Comprehensive Research Department at Shanghai Yiju Real Estate Research Institute, agreed.

House prices are still on a downward trend, and there are hefty inventories in many major cities. It will take some time before home buyers' expectations turn to optimistic, he cautioned.

Yang expected house prices in four tier-1 cities and some tier-2 cities to stop falling and rebound before year-end. But there won't be a notable price rebound for a majority of cities nationwide, he said.

Mortgage rule changes said to be in the pipeline	ICBC, CCB responding to alleged home loan policy changes