Since 2003, the Chinese Government has been focused on bringing the housing problem under control. While this sector continues to spurn government interference with skyrocketing prices, the government is still pursuing macro control policies that could eventually have some effect.

Changes may take place in macroeconomic control measures in the real estate sector by the Chinese Government in the future, with a focus on strengthening the housing supply, especially plain commercial housing, said Zeng Peiyan, Vice Premier of the State Council.

Efforts in regulating the housing demand should be strengthened to tackle the housing problem of low-income households, added Zeng. According to him, attention should also be paid to intensifying supervision over real estate projects, and cracking down on malpractices in the real estate business, such as hoarding and speculating, forcing up prices, false advertisements and contract fraudulence.

"Aiming to increase the effective supply of housing, the new real estate policy will be more pragmatic and guide the macro control of the real estate sector onto the right track," commented Liu Shan, a professor with the School of Economics of Beijing Technology and Business University, on his blog.

Curbing high housing prices

China has undergone three macro controls in the real estate sector. The first, between 2003-04, aimed to curb over-heated investment in the real estate industry. The second, in 2005, formulated eight measures to stabilize the housing price. The third, in 2006, issued six policies as an effort to regulate the structure of housing supply. However, all those moves turned out to be a failure in settling the problem of high housing prices, a concern of ordinary people.