The current housing market correction in China, especially with respect to the downward house price adjustment, is still at an early stage compared with the downturn in 2011, Chang said in a research note.

The Chinese government should tolerate a bit more of a correction in the property market to let price-demand adjust according to market forces, before embarking on any broad-based easing, she added.

On Tuesday afternoon, China's central bank said in a statement that commercial banks should be quicker in approving and issuing loans to qualified home buyers, citing a requirement from a meeting held on Monday.

Commercial banks should "properly allocate credit resources and prioritize credit demand of first-home buyers," the statement said.

Most analysts interviewed by Xinhua said they expect the property market to continue cooling this year, and housing prices in cities with large inventories are very likely to see more price declines.

Housing prices in first-tier cities and most second-tier cities are unlikely to experience "big corrections," said Zhang of Centaline Property.

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