Real estate is important to the Chinese economy. As a pillar industry, it also affects 60 other sectors including cement, steel and home appliances. Some have likened the entwinement to "kidnapping."

Real estate accounts for 18 percent of China's fixed-asset investment, which in turn contributes about 57.9 percent of the nation's gross domestic product.

The close ties have prompted fears any tightening measures will hinder economic growth.

The country's stock market, in reaction to the recent measures, has plunged.

The benchmark Shanghai Composite Index fell for its six consecutive day Friday, led by property, banking and energy shares.

Analysts have attributed stocks' decline to concerns the government measures will slow economic growth and hurt domestic consumption.

But Zuo dismissed such concerns, saying "massive building of low-cost housing and small apartments, together with renovation of shanty houses, will create demand for materials like steel and cement."

She said China's economic growth is already fast enough.

"Excessive growth will only strengthen inflation expectations and add to the pressure on policy makers to keep inflation under control."

China's economy grew by a better-than-expected 11.9 percent year on year in the first quarter, with the consumer price index, the main gauge of inflation, up 2.7 percent year on year in February, slightly below the 3-percent ceiling set by the central government this year.

Tighter restriction on property market lending has helped the development of the property market and the health of bank assets, Zuo added.