More good news for Shanghai home buyers, as another developer begins to lower home prices. This time around, it’s Vanke - China’s biggest developer by market value. The property giant is offering discounts of around 30 percent on two housing projects, attracting many customers.

Many home buyers are paying a visit to Vanke’s development project in Shanghai. They say, one of the major reasons for their interest is the discounts on offer.

A home buyer in Shanghai said "I’ve come because there’s a cut in home prices, lower than previously. This home design is good for young people like me, and it saves me a sum of money."

The latest data from the local statistics agency shows the sales area of homes in Shanghai continued to fall in the first 10 months of this year, while prices of both new homes and pre-owned homes dropped in October.

Analysts say, that indicates falling demand, which pushes developers to cut their prices.

Song Huiyong, Consulting Manager of Centaline Real Estate, said "Developers are lowering prices because of the capital crunch, which is due to housing market curbing policies. Of course, developers’ cash flow is not going to dry up. They just need to reserve capital for their development strategy."

Analysts also note, there’s no big wave of falling home prices in Shanghai yet, as only a small portion of housing projects are seeing lower purchasing costs.

Song Huiyong, Consulting Manager of Centaline Real Estate, cotinued "Currently, the cash flow of developers varies. Many companies still can get loans from banks. So they will likely make a decision after the Spring Festival."

Meanwhile, the wait and see sentiment is still prevalent in the pre-owned home market in Shanghai, as prices in that segment remain high.