Reducing housing prices proves to be tricky

China started increasing real interest rates by raising the rates of standing lending facility, a liquidity support tool, last week, a move that many say will deal a potentially heavy blow to the real estate market.

So will housing prices come down?

Analysts agree that if the overall monetary stance continues to be tightened, it will mark a real turning point in the country's monetary environment, leading to rising mortgage rates for homebuyers and causing the real estate market to really cool down.