As the situation on the Korean Peninsula undergoes positive changes, the Chinese city of Dandong on the border with the DPRK has welcomed efforts to curb home prices. Non-local and unemployed residents have to pay a higher down-payment and cannot re-sell new homes in the city's new economic development zone until five years after purchase. Media reported huge price jumps in this zone in April, but, as our reporter Xu Xinchen discovers, it might not be as juicy as speculators thought.

26-year-old Jiang Xiaoyu just bought her first home, thanks to her parents covering the down-payment and the bank giving her a mortgage.

JIANG XIAOYU DANDONG RESIDENT "I spend half my salary paying off the mortgage."

Jiang is just one of many home buyers who recently got their hands on property in the new economic development zone of Dandong city, which lies on the China-DPRK border. While Jiang is a local resident and bought the apartment as a place to live, some investors and even speculators have jumped on properties in Dandong, betting on the DPRK's efforts to open up its economy.

XU XINCHEN DANDONG, LIAONING PROVINCE "The DPRK is within easy sight just across the river. This is a new economic development zone in Northeast China's Dandong city. So few people have moved here, it's been called a "ghost town". But the local government is now having to impose new restrictions to control property prices."

Dandong saw its home prices soar in April, up 2 percent month-on-month, topping a chart of 70 Chinese cities. However, local residents are still skeptical about the future development of the city's property market.

DANDONG RESIDENT "It's still not clear at the moment, if home prices, including those in the new zone, will continue to rise."

DANDONG RESIDENT "If the DPRK's development picks up, there might be more investors coming to Dandong to boost the local economy. It's just a possibility."

And, local real estate developers say it could take years before Dandong's property market really sees the benefits.

HUA SHU VICE GENERAL MANAGER, GREEN CITY REAL ESTATE "I think it is a gradual process, and certainly not an overnight change."

Hua Shu is the vice general manager for one of Dandong's largest real estate developers. He says the April price jump wasn't a genuine presentation of the local property market.

HUA SHU VICE GENERAL MANAGER, GREEN CITY REAL ESTATE "The local property market has been weak for years. Some smaller developers had to sell newly-built homes in the new zone at a price of less than 2,000 yuan or 300 US dollars per square meter. In April, some developers decided to bring their prices up to a level that actually covers their costs, around 600 US dollars per square meter. It seems like a huge leap, but in fact, they are just getting back on their feet."

According to the local housing authority, property prices in the new zone are just catching up with older districts. And in fact, it was the cheaper price that convinced Jiang Xiaoyu to buy a home in the new zone. Xu Xinchen, CGTN, Dandong, Liaoning Province.