Will the property market rebound with a vengeance in the wake of recent rise in prices?

Some market watchers believe as long as the government allows families to own only one or two houses, which has effectively kept investors out, genuine homebuyers will continue to stay on the sidelines while prices fall. They dismiss the chances of further price increases and blame developers and speculators for hyping up the market sentiment.

But it's also possible that the market is slipping into another round of overheating, as lower interest rates and excess liquidity unleash buyers' pent-up demand for nicer and better-located homes.