Potential home buyers check out models of upcoming property projects at a real estate company in Xuchang, Henan province. A report published by a unit of the Chinese Academy of Social Sciences' said realty prices will fall 5 percent in 2015.[Geng Guoqing / for China Daily]

Realizing the problem, China Vanke has in recent years concentrated on a "fast asset turnover" strategy, in which it has made every effort to ensure built homes are sold and payments are received in a timely manner.

"China Vanke and Greenland are walking on totally different paths. China Vanke in recent years has focused its business on residential property development. It has gained inspiration from the Internet industry, which cherishes 'light assets', decentralized management, and brand value enhancement," said Zhu Yiming, a researcher with China Real Estate Information Corp.

"Greenland, however, em- phasizes on multiple-businesses and cross-border operations. Besides real estate, it has also tapped into finance, energy, hotel and automobile businesses. Hopefully some kind of synergy could be achieved," Zhu said.

China Vanke has tried to play down the significance of Greenland's rapid growth, with its president indicating that "scale" is not what the company is going after.

"Scale could be a double-edged sword. It means economy of scale. But it could also mean greater resource occupancy, and more inventory. In the 'silver era' of property industry, excess inventory is a burden, not a wealth; imprudent investment means risks, not chances," China Vanke President Yu Liang said.

Home prices expected to decline, purchase limits to end

Home prices are set to decline further next year and cities that still restrict multiple-home purchasing are expected to scrap the policy, a report by an institute under the Chinese Academy of Social Sciences said on Dec 26.

Property downturn since the beginning of the year had prompted most of the cities in which there were restrictions on home purchases to ease them. There are only five cities where the curbs are still in place - Beijing, Shanghai, Guangzhou, Shenzhen and Sanya.