Signs are emerging that China's property market is tapering off, though massive price declines have yet to be seen.

In July, 39 out of 70 monitored cities witnessed month-on-month increases in prices of new commercial residences, while only 14 experienced declines. Prices stood unchanged in 17 cities, said the National Bureau of Statistics (NBS).

As for second-hand homes, prices rose in 36 cities in July over June prices, and 22 cities saw their prices drop.

Policymakers have been pushing all their buttons to strike hard against speculative demands. The government plans to expand purchase restrictions to cover a string of second- and third-tier cities where home prices are escalating beyond the reach of many working families.

Property developers have felt the pinch of tightening measures. The Shenzhen-based Gemdale Group reported 480 million yuan ($75 million) in net profits for the first half of this year, plunging 61 percent from a year ago. China Vanke Co. had 171.37 billion yuan ($26.8 billion) worth of unsold house inventories as of June 30, up 28.5 percent from three months earlier.

Zhang Yue, chief analyst with Homelink, the country's largest property agency, said the balance sheet of real estate developers will weaken if China continues to tighten credit and restrict home purchases.

"It is likely that a turning point for the market will arrive in the third quarter," she said.

Liu Mingkang, Chairman of the China Banking Regulatory Commission, said the banking sector can endure a 50-percent plunge in property prices, dismissing fears over the ripple effects of a possible property market slump.