China's property markets have maintained momentum in spite of government efforts to control speculation.

In June, 44 out of 70 monitored major cities witnessed month-on-month increases in prices of new commercial residences, while only 12 experienced declines. Prices stood unchanged in 14 cities, said the National Bureau of Statistics (NBS).

As for second-hand homes, prices rose in 39 cities in May over April prices, and 19 cities saw their prices decrease.

Policymakers are trying everything to prevent real estate prices from spiraling out of control. The State Council recently ordered to impose purchase restrictions in second- and third-tier cities. Prior to this, efforts to rein in property prices have been focused on the largest cities, leaving smaller ones with surging home values.

"The latest move shows the government is determined to cool the overheating property industry, despite ongoing economic slowdown," said Zhang Dawei, an analyst with Beijing Centraline Property Co. Ltd.

"We don't see a bubble," said Edmund Ho, Managing Director of Standard Chartered Bank and an expert on China's real estate. "What we've seen is a correction in the market."

Even though transactions have plunged, Ho said China's key developers would still have enough cash for most of this year due to strong sales last year and provided they remained prudent in their land purchases.

"Standard Chartered believes that it's going to be a soft landing," he said. "Property prices are not going to continue going down, and instead, the market will stabilize in the next six months."