Mainland properties that have suffered the sharpest price falls will be the first to rebound once the market begins to recover, according to property analysts.

And for cashed-up buyers aiming to enter the market and willing to hold properties until the recovery gets under way, units in prime locations in first-tier cities offer the highest upside potential, they said.

But the immediate outlook is for more declines in Beijing and Shanghai, where prices were expected to drop by a further 10% or more this year, back to 2007 levels, said Meggie Qin, a director of research at property consultant CBRE.

South China Morning Post