For quite some time now, the problems in the real estate market, and the complaints about them, have occupied much space in the Chinese press.

They gave rise to the "eight points"  guidelines for regulating the market  issued by the State Council, China's cabinet, in the middle of last year, followed by the State Council's "six points" in mid-May this year, then followed by the "15 points" last week, jointly signed by a number of key central government agencies.

No doubt these guidelines will do their bit to dampen the rapidly growing enthusiasm for property investment and stabilize housing prices in major cities.

Restrictions will be heavy for certain buyers of certain types of housing, particularly those who expect to turn property ownership into a kind of investment by buying large units and renting them to expatriate tenants working for multinational corporations.

Their purchasing plans are identified as the major factor driving up housing prices.

At the same time, developers are required to build more small units, which will have to be no less than 70 per cent of their total offerings. The supply of small units is likely, as a result, to see an increase over the next six months, and this enlarged supply will probably help stabilize overall housing prices.

These are necessary moves to cool down a market driven by unbridled growth and perhaps waste. A relatively quiet real estate industry will help China rein in its overall GDP growth for the year by reducing the demand for some key production materials.

(For more biz stories, please visit Industry Updates)