Along with China's economic slowdown and policy tightening, the real estate market has been experiencing a mid-term correction since late 2007. This round of property sector downturn is cyclical rather than secular and will last from two to two and a half years (September 2007-early 2010). From a longer-term perspective, the factors for sustainable growth of the housing market remain sound. These include relatively strong economic growth, positive demographic trends, urbanization, and upgrades in living standards.
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Rao et al. (2010) studied this question.