The mainland property market will see a correction this year due to slower demand, higher supply, tightening liquidity and the effects of government measures to cool speculation, according to Standard & Poor's Ratings Services.
'The middle of 2010 could be a potential turning point for many developers as increased supply leads competition to intensify and Beijing's initiatives weaken demand,' said Bei Fu, an associate director of corporate ratings at S&P.
'The market will shift from more or less the seller's market to more or less the buyer's market.'
Housing prices in mainland cities surged last year, with those in Shenzhen soaring 80 per cent, while Shanghai and Beijing saw leaps of 60 per cent.
The rapid growth in the industry has prompted the government to announce various economic tightening measures, including increased deposit reserve requirements, reductions in bank credit growth and restrictions on loans to developers with idle or unpaid-for land.
S&P said the government may take further steps as it aims to combat excessive growth and irrational price rises that could cause an economic imbalance and fuel inflation.