China's property sales will see growth of between 10 percent and 20 percent year-on-year in 2013, with price change limited to a 5 percent drop and a 5 percent increase, global financial services provider UBS said on Tuesday.

Supply surplus was one of the key factors cooling property prices, but bulging inventories will be consumed in 2013, according to Eva Lee, analyst with UBS Securities Asia Ltd.

Lee expects residential sales to marginally recover thanks to an improved economic outlook, but developers will continue to face more competition or pricing pressure in non-home purchase restriction cities in 2013.

Major listed developers increased their market share by 2 percent to 15 percent in 2012, according to UBS estimates.

Heavyweight players will cash in on a sluggish market as smaller companies are forced to quit or merge with larger ones when fewer people buy houses, Lee said. She added that the market share of the top three developers grew from 5.5 percent in 2011 to 6.8 percent as of November, 2012.