Wang Jianlin, owner of the Dalian Wanda Group, and the second richest billionaire in China said that he is afraid that the real estate bubble is growing and might burst soon.
Wang is also the biggest real estate developer in the country. On Wednesday, he called China's real estate market as the "biggest bubble in history."
However, analysts from ANZ think that the real estate market in China should not be seen as wrapped in a bubble. Raymond Yeung, Louis Lam and Kanika Bhatnagar are three economists who think that the fear of a real estate bubble is just "academic."
These economists who wrote the ANZ analysis said, "In our view, we cannot simply regard a cyclical upturn in property prices as a sign of a real estate bubble."
Because of the lucrative market prices, sales grew by 31.8 percent compared to last year.
Wang said, "The problem is the economy hasn't bottomed out. If we remove leverage too fast, the economy may suffer further. So we'll have to wait until the economy is back on the track of rebounding--that's when we gradually reduce leverage and debts."
ANZ also believes that the surge in property purchasing is only seen in select cities such as Guangdong, Jiangsu, Zhejiang, Shandong, and Shanghai. These areas accounted for 44 percent of the national total, compared with 41 percent a year ago.
Analysts also believe that the government will be able to intervene and control the situation if ever a crisis comes up.
They wrote, "More local governments will likely implement property tightening measures. We also expect the PBoC to adopt macro-prudential rules to manage real estate lending loan growth," they wrote.
"Against the backdrop of 'supply-side structural reform,' the central bank will refrain from deploying conventional easing tools (e.g., reserve requirement ratio cuts) in order to avoid sending the wrong signal to the property market."