The International Monetary Fund agrees. In a paper published in April, it ranked China as having the fourth-lowest level of household debt among 11 Asian countries, at around 12 percent of its gross domestic product (GDP).
In New Zealand and Australia, where households are the most indebted, debt levels exceed 90 percent of GDP, IMF data shows.
Downpayments of 30 percent for first home purchases and between 60-70 percent for second homes, and laws which make borrowers liable for debts even if they default on repayments have banks viewing mortgages as among their safest assets.
Read MoreChina's May home prices rose at slowest pace this year
It also means those who fear that a sharp decline in home prices would rock China's financial sector by inundating banks with bad debt may be overstating the case.
Further, a reduction in the amount of reserves that banks must hold to boost lending to small firms and the farm sector has inadvertently freed up some cash for the property sector.
"Funds are like water," said Fan Xiongchong, vice-president of Sunshine 100 China, a mid-sized developer based in Beijing. "Eventually, it will more or less flow into the property market via various channels."
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Not without risks
This is not to say the housing market, which accounts for about 15 percent of GDP, is without risks.
For one, despite the moderation this year, prices are still near record highs and affordability rates near an all-time low. Construction has also fallen sharply this year, which would affect employment and spending.
The statistics show that Wenzhou, a wealthy city with a thriving private sector, has been hardest hit in the current slowdown with prices down 4 percent in May from a year ago.
Read MoreChina's economy is at a 'tipping point'
Experts disagree about the extent of housing oversupply in China, but agree that slower property investment would be a drag on the economy. A sharp drop in home prices would destroy household wealth, undermining confidence and spending.
"Comfort comes from the fact that we see the Chinese government taking action - they are not oblivious to what is happening," said London-based Yerlan Syzdykov, an emerging markets debt fund manager at Pioneer Investments.
"That's why this 'stop-go' policy... on one hand they want to cool off the market, and on the other they don't want it to hurt growth," Syzdykov said, referring to earlier and prolonged government attempts to rein in red-hot home prices.