(Yicai Global) Oct. 11 -- New home transactions in downtown Suzhou in eastern China doubled in September as the government aims to improve the investing landscape.

About 1.2 million square meters of freshly finished homes were sold in Suzhou last month, rising nearly twofold from August, according to data disclosed by the local arm of real estate information agency CRIC.

The best-selling project was Yuexiu Yuejianyunting in the Suzhou Industrial Park with 526 houses sold, which included about 400 units purchased by the local government. Two other major projects located in the Suzhou New District also indicated that a large part of sales was contributed by the government.

The sales bump was caused by a recent online registration of government-bought properties so when excluding that, Suzhou's property market did not improve much in September, the agency explained.

Industry insiders believe that the purchases signal support to the real estate market, enhancing customer confidence. The homes may be used for subsidized rental housing or talent support, while the exact plan remains uncertain. Several real estate insiders in Suzhou said to Yicai Global that most of the projects that the government bought are partly owned by state-owned enterprises or the city's investment company.

There was a significant increase in the number of visitors to property projects in the city in Jiangsu province during the National Day holiday last week, according to the China Index Academy. Sales promotions also mobilized potential home buyers to a certain extent.

Suzhou's real estate policies have been relaxed since May. Buyers without local household registrations need to show a track record of six straight months of social security payments instead of the earlier 24 months while the mortgage rate for first-home buyers has fallen to an all-time low of 4.1 percent.

Editors: Shi Yi, Emmi Laine, Xiao Yi