5. Mortgage policy easing will support the real estate sector

Chinese homebuyers look at models of residential apartment buildings during a real estate fair in Shanghai, Dec 13, 2014. [Photo/IC]

China's easing of mortgage lending terms and housing taxes will alleviate the downside pressure on property sales, said Moody's in a note on Tuesday.

While the current policy relaxation will boost sales volume in the near term, developers' pricing power is expected to remain limited as market inventory is high and developers with weak liquidity will take the opportunity to offer promotions, the report added.