Since May, the central government has introduced a series of policies, including new taxes and tighter loan rules, to restrict overseas real estate investment and ease the pressure on surging property prices. But strong economic growth, rapid urbanization and rising personal incomes have continued to buoy the market.

The anticipation of a stronger yuan also attracted a greater influx of overseas capital to the mainland.

Growth in housing prices in the 70 cities on the mainland moderated to 5.2 percent in November, after a 5.4 percent rise a month earlier, the National Development and Reform Commission said in December.

Meanwhile, the Hong Kong real estate firm predicted that Hong Kong investors may buy 3,950 second-hand units in 2007, up 15 percent year on year. Transactions are likely to reach two billion yuan and rise 19 percent from a year earlier.

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