China’s property sector, which has suffered from seven consecutive months of price declines after a slew of government tightening measures, is staging a surprising turnaround, boosted by the central bank’s recent monetary policy easing.

But analysts fear the rebound could lead to a new crackdown by the government, which is keen to keep prices in check.

The average price for a residential property rose 8.4 percent in May from a year earlier to 5,740 yuan ($900) per square meter. Property sales in key cities including Hangzhou, Shenzhen and Nanjing have sped up in recent months, Shanghai Securities News reported on Wednesday.

A day earlier, the country’s second-largest property developer China Evergrande reported a 33 percent rise in May sales to a record 10.37 billion yuan ($1.62 billion) - the highest single-month sales record in the company’s history.

China’s recent interest rate cut, which lowers mortgage rates for homebuyers, has also added to optimism around property sales. On Tuesday, the Chairman of Shui On Land told Reuters that he expects the latest policy move would boost transaction volumes this year.

Du Jin Song, real estate analyst at Credit Suisse, who had expected real estate prices to decline 10 percent this year, now forecasts property prices will in fact rise in the second and third quarters.

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