According to a Reuters’ poll, a rebound in China’s residential property market is set to continue but economic uncertainty means sentiment will be cautious and prices nationwide will rise a modest +10% between now and the end of 2010.

Property prices in bigger cities, where wealth levels and spending propensity are higher, will outperform second-tier cities with apartment prices in Shanghai, Shenzhen and Guangzhou set to rise by at least +10% in the next 18 months, according to Reuters.

The poll coincided with a Reuters’ global real estate summit. Home sales in first and second-tier cities have jumped more than +20% in the past three months, according to analysts, after correcting in the second half of last year.

The market has been boosted by interest rate cuts and Government measures such as stamp duty cuts and reduced mortgage down payment requirements, which are part of a broader economic stimulus plan.