The government aims to gradually set common sense controls in the property sector without causing a crash. The goal is to focus on more stable and steady economic growth with more controls on credit.

Property sales by floor area were 6.0 percent lower in October 2017 than a year earlier, and there was also a 1.5 percent decline in September 2017. This decline was the most substantial since the first few months of 2015, marking one of the most significant shifts in the market in recent years.

October also marked the first month where sales decreased by value since March of 2015 - lowering by 1.7 percent compared to the prior year. September had a 1.6 percent gain in sales by value compared to the previous year.

Overall residential, office space and commercial real estate investment increased by 7.8 percent for the first 10 months of 2017 compared to a year prior. Mortgages and household loans fell from 735 billion yuan in September to 450 billion yuan in October.

The market has been in a two-year boom, which has resulted in an economic boost but also concerns of a bubble, encouraging Chinese property investors to continue to look overseas for stable investments.

Home prices have been soaring in China out of control for many property investors, with cities like Xiamen and Shanghai demonstrating remarkable annual price increases of up to 31.2% and 43.9%.

The central bank has warned that household debt in China was increasing too quickly, with outstanding household consumer loans increasing by 30 percent in September 2017 compared to the prior year.

By increasing certain controls over the property market, the government aims to restore more financial and social stability with a focus on quality economic growth. Authorities have been attempting to also reduce the impact of illegal or unethical financing for mortgages or down payments.

Increased regulation attempts have included asking banks to verify personal income information more thoroughly, as reported by the Xinhua news agency in November.

Although there has been a slight slowdown in the property market, other sectors in China continue to move ahead strong, with manufacturing, industrial, consumer spending and infrastructure investment likely to offset any slowdowns in the market.

China has also continued to impress financial markets this year with 6.8 percent GDP growth through the first three quarters of 2017. The Chinese government expects the economy to grow by 6.5 percent in 2017as a result of its recent controls, down from the recent 26-year low of 6.7 percent in 2016.