"Last weekend, across the border in Shenzhen, we had an entire development sell out in six hours. It set a record in terms of a single day transaction value," he noted. "The property market in China is overbuilt. Generally, structurally, it should be in a downward trend in the coming years."
In Shenzhen, unlisted developer China Horay sold 1,637 residential units in six hours, fetching around 6 billion yuan and selling out the development on launch day, Macquarie said in a report last week, citing local media.
But concerns about the potential for overheating hasn't stopped two of the country's largest property developers from heading to Shanghai's equity market. Guangzhou R&F Properties is seeking to raise around 35 billion yuan, while Dalian Wanda Commercial Properties is targeting around 12 billion yuan in new Shanghai listings, Reuters reported Wednesday. Both are already listed in Hong Kong.
The new listings come after China last month announced that it would lift the suspension of initial public offerings (IPO) that it imposed in July in the wake of a multi-month stock market crash.
To be sure, not everyone believes China's housing recovery will run out of steam.
"This is a pretty sustainable recovery into 2016," Wee Liat Lee, head of Asia-Pacific property research at BNP Paribas, told CNBC.
Lee is looking at the 30-50 drop in new land sales in 100 key cities in China as well as the 20-30 percent drop in construction starts by developers. He also noted that around 85 percent of current homebuyers are taking a loan, suggesting they are first- or second-time homebuyers, compared with three years ago, when 50 percent of homebuyers paid in cash, an indicator they were investors.
"As you move into 2016, the demand supply dynamics will move in favor of demand being better and supply being gradually weeded out. So actually I predict that more cities will have price increases next year," Lee said.
—Nyshka Chandran contributed to this article.