"Given the low volume situation, capital values will remain under pressure and continue to experience mild corrections," it said in a note last week. "However, we do not expect to see a free fall in home prices in the absence of fire sales."
(Read more: Why Asian property investors may fear US taper)
Daiwa has also noted property prices seem to be finding some support. "Flat owners will need to cut prices if they want to sell quickly, but it appears to us that not many people actually do want to sell," Jonas Kan, an analyst at Daiwa, said in a note last week.
Another factor set to support home prices: the government isn't likely to meet its land supply target, meaning fewer new housing units will be on tap, Citigroup noted in a report last week.
Early in 2013, the government indicated it expected land-supply potential for 25,800 units for the fiscal year ending March 2014, but the total for the first three-quarters has only been around 11,300 units, suggesting a significant miss, Citigroup noted.
(Read more: Where's the next property bubble building?)
It expects home prices to consolidate by about 10 percent within a year, compared with market expectations for an around 15-20 percent decline in a year and around 30 percent decline over two to three years. The bank is positive on select developer stocks.
— By CNBC's Leslie Shaffer. Follow her on Twitter: @LeslieShaffer1