"While residential real estate prices have yet to go down in response to any of the government's efforts to date, the increasing number of measures being employed can be expected to reduce investor confidence in the near term. The primary consequence of this will most likely be a rapid decrease in the number of new transactions taking place," said Michael Cole, research director of Colliers East China.

According to Wang Gehong, president of Beijing Grand China Real Estate Fund, the cash flow of many smaller property developers has greatly deteriorated in the past few months.

"Now we receive many projects from banks as they further strengthen risk management over the real estate sector," said Wang.

While Chinese property developers seek overseas capital, the world's leading private equity firms and real estate funds have also kicked off a new round of fundraising.

During an earnings call with investors on Feb 3, Blackstone Group president and chief operating officer Tony James said the firm would begin fundraising for Blackstone Real Estate Partners (BREP) VII on a scale similar to BREP VI, which raised $10.9 billion.