One of the upsides of the recent tightening in financial conditions is that it has pricked such potential bubbles.

The company said the government's recent tightening measures will have a "significant" impact on the real estate sector.

But they have not acted alone, interacting with earlier weaker lending standards, and the more recent tightening in lending standards.

But the recent tightening in local financial conditions, along with the fragile global backdrop, may act as a brake on growth, Mr Borkin said.

The recent tightening of credit markets and the subsequent slowdown in the initiation of new construction projects have led to increased competition, the company said.