"Although regulations in property market and affordable housing remain the primary focus in government policies regarding real estate market, the pressure of rising housing price is still on the rise," Zhou Jiang, Director of Policy Research Centre, Ministry of Housing and Urban-Rural Development (MOHURD) said at an industrial conference organized by Shanghai SteelHome.

Mr. Zhou pointed out that the real estate market gradually bottomed out in 2012 and saw rapid rise in January and February, 2013, but the upward pressure on house prices is hovering.

"In the long term, China is in the middle of a quick urbanization process and that a tight supply caused by population in metropolis and large cities will not change soon; In the medium term, investment in real estate will remain robust over a long time; And in the short run, the negative growth in new space under construction in 2012 will impact supply in the next two to three years," noted Zhou.

Zhou Jiang suggested: 

1. Demand management. Specially to continue restricting house purchases in cities ripped apart by supply tensions over an extended time, to differentiate credit loan policies, to promote property tax reforms.
2. Rising supply in commodity housing. "Now the key question is whether we can guarantee land supply," added Mr. Zhou. 
3. A big push in affordable housing.
   
   

(To contact the reporter on this story: gyy@steelhome.cn or 86-21-50585368)