BEIJING, March 13 -- Shanghai's housing market saw some growth during the Chinese New Year, while many cities registered no sales at all. The government is hoping last month's rate cut will begin turning things around.

March is often a good trading month for homes in Shanghai, and new lower lending rates could help ensure that. On Feb. 28th, the People's Bank of China cut the benchmark deposit and loan interest rates by 25 basis points. A one-year lending rate of 5.35 percent is encouraging some potential home buyers.

"It's making me think more about buying a home. I'll probably spend more time looking for one," Resident Tao Yuan said.

However, one expert says the interest rate cut will have only a limited effect on pushing up trading volume. Much of the existing demand is thought to have already been absorbed during the final quarter of last year, but there is more to it than that.

"For first-tier cities like Shanghai and Beijing, the major conflict in the market is between high housing prices and most people's ability to buy. The interest rate cut will temporarily increase people's purchasing power, but it doesn't solve that conflict, which is the more important issue," Lin Bo, vice president of CRIC's Research Center, said.

For some potential homebuyers, getting cheaper loans is still not enough for them to make the buying decision now.

"Under the home purchase restrictions in Shanghai, I am not allowed to buy since I am single and my registered residence is not here. It didn't make me more interested in buying a home now," Shanhai resident Xie Yuangchun said.

Home purchase restrictions are another issue that many are waiting to hear more about from the legislative sessions currently being held in Beijing. Lin says it is unlikely that cities like Beijing and Shanghai would completely lift the restrictions, but he expects governments to continue gradually easing them.

"I think this year, regulations will be adjusted if the market doesn't pick up and there is pressure for economic growth. This could mean lowering the down payment for first homebuyers from 30 to 20 percent, and reducing or eliminating the deed tax on transactions," Lin said.

While Shanghai's housing sales over the Spring Festival were not much in terms of total area, Centaline Property says they were up by 29 percent from last year's numbers. Some 20 new commercial residential properties will be open for sale this month.