China capable of ensuring stability in property market: Official

A housing project in Nanjing, capital of East China's Jiangsu province. [Photo/Asianewsphoto]

BEIJING - The Chinese government is capable of maintaining stability in the property market, a senior official said on Thursday, as measures have reined in surging prices in major cities.

"Despite looming problems and uncertainties, there are more favorable conditions. We are capable of maintaining stable and healthy development of the property market this year," Chen Zhenggao, minister of housing and urban-rural development, said during a press conference.

His remarks came amid stabilizing signs in China's property sector, which has seen fluctuations in recent years.

Of 70 large and medium-sized cities surveyed, 45 saw prices for new residential housing climb month on month in January, down from 46 in December and 55 in November, according to the National Bureau of Statistics.

In Beijing, new residential house prices remained flat month on month, while Shanghai prices fell 0.1 percent. House prices in Shenzhen, a southern metropolis neighboring Hong Kong, slid 0.5 percent.

"The momentum of excessive home price increases has been contained, showing the primary results of regulatory policies," Chen said.

Since October last year, dozens of Chinese cities have announced measures, including purchase limits and tightened mortgage restrictions, to prevent prices from rising out of control.

This round of restrictions and other measures came after two years of progressive policy easing stimulated home buying in Beijing, Shanghai, Shenzhen and other first-tier cities. In the meantime, developers in many small cities are still grappling with unsold homes.