They said the situation may drive many smaller developers out of business, with only larger firms having the financial strength to survive.

"Back in 2009, the largest 20 developers accounted for 12 percent of national sales. Last year the ratio jumped to 23 percent," said Jeffery Gao, head of Nomura's China property research. "If a sales rebound represents a recovery in the external environment, the net margin levels reflect a company's inner operational capability."

Home prices see year-on-year rise

Average new home prices in 100 major Chinese cities have risen over a year earlier for the first time in 16 months.

Figures from property consultancy China Real Estate Index System show average prices in the cities rose 0.15 percent in August from a year earlier.

On a month-to-month basis, prices rose 0.95 percent in August, an acceleration from July's 0.54 percent growth, also the fourth straight month-on-month growth. The sustained recovery comes after China rolled out a barrage of support measures since last September, including a fifth interest rate cut last week.

On Monday, the government cut down payment thresholds again for some second-home buyers who are funding their purchases through housing provident funds.

Of the 100 cities, Shanghai led the rises with a 3.77 percent advance in August over July, which meant prices have risen 10 percent in the past year. Prices in Beijing grew 1.74 percent, while in Shenzhen, Guangdong province, they halted previous frenzy surge, edging up 0.72 percent, as a result of market-curbing measures.

Meanwhile, nearly 20,000 pre-owned homes were sold in Beijing in August, according to the capital's housing bureau, a 10.1 percent fall on July but still a high volume. There have been just 13 months since records began when Beijing's house sales have exceeded 20,000 units a month.