Hong Kong's Hang Seng Mainland Properties Index jumped 12%, while Chinese CSI 300 Real Estate gained 7%.

Major developers listed in Hong Kong including Country Garden and Sunac China rose 14% while Longfor Group rallied 23%. Seazen Group and KWG Group both firmed 16%.

China's top leaders pledged after a meeting on Monday to ramp up policy support for the economy amid a torturous post-COVID recovery, focusing on boosting domestic demand.

For the property sector, the Politburo, a top decision-making body of the ruling Communist Party, said it is necessary to adapt to the new situation caused by significant changes in market supply and demand, and optimise property policies in a timely manner.

While few details of the support measures were provided, investors focused on one change in tone in particular, which they thought could mean more property stabilisation steps were imminent.

The Politburo did not mention the oft-repeated phrase "houses are for living in, not for speculation" in the statement after the meeting.

"Most important, (Beijing) sent a signal of further easing property restrictions by dropping the phrase...and mentioning streaming property policies," Nomura chief China economist Ting Lu said.

Lu, however, maintained the view that there is no quick fix for the property sector, and the central government would only marginally ease some existing restrictive measures in large cities.

Morgan Stanley said the overall statement by Politburo exceeded investor expectations and that policymakers would likely roll out a "more sensible and forceful package" that could include easing second home purchase restrictions in second tier cities.

In recent weeks, investors were wary of a deepening debt crisis in the property sector as new signs of trouble emerged among state-backed property developers Sino-Ocean Group and Greenland Holdings, as well as property giants Country Garden and Dalian Wanda Group.

(Reporting by Clare Jim; Editing by Sherry Jacob-Phillips and Sam Holmes)

By Clare Jim