International industry experts say China's property market needs more government support if excess stock in the housing sector is to be reduced.
Experts say much residential housing has left empty over the past few years, creating a major challenge for the housing market moving forward.
Richard Koss, an adviser to the International Monetary Fund, has been analyzing the widening imbalance between supply and demand.
"All housing imbalances somehow come from expectations that are too optimistic. In China, it's expectations about growth more than expectations about prices. You can do things like setting aside a certain amount of development in the areas that are used for, sort of, medium- and low-income housing and the sort of things."
However, Professor Joseph Gyourko with the University of Pennsylvania, is optimistic about the Chinese real estate market in the long-term.
"It can take many years, two to three years or more, to grow out of that excess supply, but I think China will work through the problem because you still have a huge rural population you are going to bring in to urban areas. In other words, there is a strong demand trend in the long run."
The household registration system - or Hukou - is another factor that influences the property market in China.
The system restricts a person's access to public resources outside of his or her official area of residence.
Professor Gyourko says changes could be made to the Hukou system to help reduce the oversupply of available housing.
