Experts confident on real estate in China

Despite recent suggestions that China's property market is overheating into a bubble, analysts still said they have confidence in the sector.

According to a research note by strategists at Haitong Securities Co, the market is more of an "irrational exuberance", based on their experiences of previous boom and busts in Japan and the United States.

Driven by the influx of capital, labor and resources to cities such as Beijing, Shanghai and Shenzhen, the note said the total value of properties in China's first-tier cities is now equal to half of that in the entire US.

Guo Yi, marketing director at Yahao Real Estate Selling and Consulting Solution Agency, however, considered Haitong's US-China analogy "overstated and exaggerated".

"You can compare China's first-tier cities with cities like New York, but not with the less-developed cities and suburbs in the country as a whole," she said.

China's real estate boom has been driven by its surging economy, she added, and the continuing prospects of growth in first-tier cities are due mainly to the huge flows of capital and labor in recent years into the major population centers, as well as the government's easing policies including lowered taxes and interest rates.

Guo said she believes China's real estate market will continue enjoying a relaxed policy environment, which will further spur the sector.