Still, he sounded a warning about "divergence" in the domestic housing market.

"In big cities like Beijing and Shanghai, the risks of the property market are not so big. But some other cities that are experiencing falling home prices have to be careful."

To cope with the cooling market, property developers are taking different measures. Franshion Properties (China) Ltd, the Hong Konglisted real estate arm of Sinochem Corp, to take one example, is focusing on high-end projects in key cities, a sector with comparatively high profit margins and limited supply.

The company's income from high-end projects rose 25 percent year-on-year to HK$16.9 billion ($2.2 billion) last year, which helped the developer achieve gross profit growth of 28 percent.

The company will strive to further improve its turnover rate, as it believes that "cash is king" in a sluggish market. Franshion's asset turnover - a measure of financial efficiency - reached 21 percent last year, its results showed.

Agile Property Holdings Ltd, also listed in Hong Kong, has reportedly raised new financing of HK$6 billion. The company in April received a loan of $475 million.

As residential home market cools, investment keeps on growing	Property price surge 'could soon be over'