Mainland housing prices have surged since March, but they will soon lose momentum and even start to fall around the end of the year, boding well for a more sustained contribution to overall economic growth.

A burst of lending in the first six months helped fuel a wave of pent-up end-user buying and speculative purchases, driving up prices for some projects in major cities by 20-30% and creating concerns about dangerous bubbles.

Speculative transactions are subsiding, while a fresh round of property investments will increase supply.

South China Morning Post