A real estate project in Yichang, Central China's Hubei province, Jan 2, 2014. [Photo / Asianewsphoto]

BEIJING - China's real estate industry is on firmer footing compared with a year ago, said Standard & Poor's Ratings Services in a report on Monday.

Developers registered record sales growth and enjoyed financing windows that led bond issuance to double in 2013. In the past two weeks, more than a dozen municipalities across China have taken steps to cool their markets, as housing prices continued to rise.

S&P stands by its stable outlook for the sector and expects sales growth to moderate in 2014, the rating agency said.

"In our view, central government regulations will likely have a neutral impact on the industry in 2014," the report quoted credit analyst Bei Fu as saying.

"Buyers in tier-one cities, such as Beijing and Shanghai, and top second-tier cities face further lending and purchase restrictions. The developers' geographic diversity and sales execution will therefore determine the impact of the sales slowdown," Fu said.

For 2014, rating movements will likely highlight developers' geographical diversity, growth strategies, and financial management, the rating agency said, adding that "we could upgrade some bigger developers that have steadily improved their financial health through strong sales and access to cheap funding."