Shenzhen's property market has improved across the sectors with residential transactions and prices having picked up and office demand also increasing, according to Savills Property Services (Shenzhen). The residential sales market had seen a considerable pick-up in transaction volume and prices since March while the land market had also perked up significantly in the last six months, Woody Lam, the managing director for southern China at Savills, wrote in a report. In April, two land parcels were auctioned off for a total of 80 million yuan (HK$90.72 million), while a residential plot in Futian district was sold for 15,550 yuan per square metre on June 10. Initiatives taken earlier this year by Beijing and the municipal government as well as the recent buoyancy in the residential sales market were thought to have contributed to the optimism in the land market, Savills said. With the government expected to maintain its 'moderately loose' monetary policy, the rebound in transaction volume and prices was likely to continue at least over the short term. It said demand for office showed signs of increasing in the second quarter, especially for larger units. 'Demand has also picked up in the strata title market with domestic enterprises especially from the finance industry eager to purchase grade A office space.' Grade A office transaction prices rose 4.1 per cent in the second quarter to an average of 25,200 yuan per square metre as investors and end-users returned to the market. Despite recent optimism, however, it said a significant volume of supply was expected to maintain pressure on rents and occupancy rates for at least the next six months. There will be 300,000 square metres of new supply of grade A office in the Futian core business district in the second half after 140,000 square feet were launched in the first half, according to the report.