Housing prices in 70 major Chinese cities jumped over 7 percent year-on-year from January to November last year. Housing prices in November alone were up at an annual rate of 10.5 percent.

But some experts say housing prices in some cities will see a decline in 2008.

Li Wenjie is with a real estate company.

Statistics show that over 60 percent of home buyers are speculators in Guangzhou and Shenzhen. That is to say, the housing price hike was caused by speculation. It is estimated that housing prices will decline by, at most, 20 percent in 2008.

But in Shanghai and Beijing, statistics indicate housing speculators account for about 20 percent of the market. Over 70 percent of the home buyers purchase property for their own needs, so housing prices are believed to remain stable in 2008. And many experts say the consumer price and stock price will also impact the housing price.

Yin Zhongli is a real estate expert with the Chinese Academy of Social Sciences.

If the stock price goes up in 2008, it will stimulate the housing market to hike. And if the consumer price index continues to rise by over 7 percent, China's central bank may implement a tighter monetary policy. This would cause big negative impact on the housing market.'