China May be Reaching Over-Supply in the First Quarters of 2011

China's Premier Acts to Avert Housing Bubble

Compounding Wen's dilemma is that about 1.2 billion square meters (about 13 billion square feet) of residential property space now under construction will hit the market in the coming few months.

That is about 45 percent more than the total sold so far this year, enough to tip the market into relative over-supply, Reuters reports.

They are Liu Shiqing and Xu Shengli of Essence Securities in Beijing.

"Under the impact of the macro policies, shares in developers face high risks in the next two quarters," they said in a note to clients.