Analysts are predicting that restrictions for private investors on owning second properties, a reduction of property taxes and an extension on mortgages for individuals are likely.
'Policy changes will probably stem from initiatives to spur consumer demands, rather than ease credit policies to real estate developers,' said Qin Xiaomei, head of research of property consultant CB Richard Ellis' Beijing branch.
China's property market began to cool down during the fourth quarter of last year and transactions are remaining low despite intensive promotions by developers. The traditional peak season in September and October, has failed to materialise.
The fall in real estate investment has also sparked growing worries on slowing growth rates in the economy.
The average annual growth rate of real estate investment in July and August hovered around 19%, compared with 34% for the second quarter of this year, statistics show.
The global financial turmoil is expected to hit China's exports hard this year, since the US and European Union account for about 40% of the country's total exports.
'If China fails to respond to domestic demand effectively, the country may face bigger risks in the economic downturn, given the big drop in exports and fixed-asset investment,' said Peng Wensheng, head of China Research at Barclays.
It is also estimated that more than 200 real estate agents in China have gone out of business since last year.
'The US financial tsunami will have an impact on China's economy in the future. The public should be cautious and not be too optimistic about the real estate market,' said Yi Xianrong, of the Chinese Academy of Social Sciences.
Slower real estate sales have cut the demand for steel. There is concern that demand for other commodities could also drop.
