Realty heading for a market consolidation

Strong demand, limited supply to offset chances of housing collapse, say analysts

The property market in China is likely to consolidate in the second half of the year, as strong demand and limited supplies will offset the chances of an imminent market collapse, market analysts said on Friday.

"We expect the property sector to see slower growth this year given that home prices and sales volume have fallen. However, the market will not collapse," said Raymond Ngai, head of China Property Research at Merrill Lynch (Asia Pacific) Ltd.