The China 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%, while Shanghai and Beijing saw leaps of 60%.

South China Morning Post