One analyst told CNBC on Friday that China's property outlook could turn brighter in the next few months, but two things must happen for it to improve.
The director of China markets research at Rhodium Group said that greater access to funds within China could help lift the real estate sector in the country.
Wright told CNBC that conditions are emerging for a more constructive outlook for the Chinese property sector, for the economy as a whole, and for implications for risk assets.
Financial pressure will be added to developers by a continued decline in property sales. It is not something Beijing can offset with policy alone, given that property sales account for trillions of dollars in the Chinese economy.
Lower interest rates would help the Chinese economy by stabilizing bank lending growth and reducing borrowing costs.
China Evergrande Group and other Chinese real estate firms are struggling to repay their debt, which came to the forefront in the last few months.
Evergrande and Kaisa were both put into restricted default by the ratings agency.
An issuer restricted default is when the issuer has failed to make a payment, but doesn't initiate any procedures to wind up the business, such as filing for bankruptcy.
China's economic growth prospects have been affected by property sector problems.
The annual Central Economic Work Conference is expected to be held in the coming days.
The economic meeting could reveal additional concrete steps to stabilizing the economy and the property sector.
The decision by the People's Bank of China to cut the amount of cash that banks must hold as reserves would be followed by any additional policy actions. The central bank would release over a trillion dollars into the economy.
