Moody's has now downgraded its outlook for China's property sector to negative from stable, on concerns about deteriorating credit conditions for developers over the next 12 to 18 months.
Moody's says that reduced bank lending, rising interest rates and an increasing property supply will inevitably bring down sales and profit margins.
Moody's contends the liquidity conditions of some 10 developers here in China will be more vulnerable if their sales fall by 25 percent from a year earlier.
Some developers have already tapped the offshore debt market for funds.
The central authorities here in China has rolled out a series of measures to curb housing inflation, including four hikes in interest rates since October and restrictions on multiple home purchases.
