China Vanke Co. Ltd, the country's largest property developer, reduced home prices in Hangzhou, eastern Zhejiang Province, in the face of a continued downturn in the housing market. Economists said the latest move could signal another round of price-cuts for residential property.

Other large residential developers, such as Greentown China Holdings Ltd., and Wharf Holdings, also trimmed prices in some projects. Analysts said that while many developers have reported a severe decline in the number of sales, the reduction of prices has raised concern.

Developers only sold 17,631 homes in the first three months of 2014 in Shanghai, down 42.6 percent compared to the last three months in 2013 and down 31.2 percent compared to the same period in 2013.

The deterioration of the housing market this year has been caused by oversupply, in contrast to a slump in 2008, which was impacted by the financial crisis, and a downturn in 2011 led by policy restrictions on the market, according to E&H Corporation, a Shanghai-based consulting company.