Beijing's property market has been one of the hottest in China, and, as such, the capital's municipal government has implemented policy after policy to cool soaring home prices. Now, half a year later, prices are finally going down.

According to Sina.com, nearly 130 residential complexes are offering discounts in August. Most are for properties in the outskirts of Beijing, especially the Tongzhou, Daxing, Fangshan districts.

According to the Beijing Real Estate Association, the city's average home price dropped by more than 8 percent year on year in the January to July period.

The price of some projects under development are now at about 15 thousand yuan per square meter. That's a quarter cheaper from their peak levels.

Analysts say it's due to an abundance of homes, or supply, in the market.

An industry insider said, "Inventories have reached 110 thousand homes. Developers are changing their strategy by lowering prices, so as to see better sales."

But home buyers are not taking the bait. Official data shows that in the first 7 months of this year, only 15 percent new homes in Beijing to hit the market were sold.

Industry insiders expect the property market to experience more pressure in the short term. They say the combination of more new homes and lower sales are likely to force more developers, especially small and medium sized ones, to bring down their prices.