If you're Chinese and perform an Internet search using the characters fang and jia (meaning "housing prices"), you get millions of results.

And why not? It's definitely one of the hottest phrases in China in the past year. It certainly has received media attention as the target of much abuse and cursing.

Is the vulnerability of the government's policies behind the growth surge? Or is it illicit house hoarding to drive up prices of unscrupulous developers, or the vast demand of houses for investment purposes?

The latest round of debate on whether prices would continue soaring this year includes an article by outspoken developer Pan Shiyi that prompted adamant support and disagreement.

In an article posted on his blog, Pan, president of SOHO China, listed seven factors that would affect housing prices this year: The fast and steady growth of China's economy, mounting pressure to appreciate the renminbi, the housing supply's failure to keep up with the sharp increase of demand, the rising income of Chinese, which prompts more investment in fixed assets such as houses, the tightening of government policies, which has made small developers' entry into the market more difficult, Beijing's recent announcement that it would build more low-cost houses and houses with a ceiling price and the Beijing's decision not to suspend construction during the 2008 Olympic Games.

"Pan Shiyi is misleading common people by claiming that scarce land supply is behind the housing price hike.

"Official figures show that developers in Beijing now have sufficient land to develop for 10 or 15 years. The real culprit behind soaring prices is land hoarding by developers. Most consumers are able to buy only a place to live in with their hard-earned money."

Shi Hanbing, a correspondent with Shanghai Securities News

"In 2007, the real estate market will face surges in both supply and demand. Housing prices will also maintain an upward trend to go with the steady growth of the national economy. But the increasing pace will slow down as many of the country's adjustment measures gradually come into force and show their effects."

Luo Yu, market manager of Beijing Xinyitian Fixed Assets Co Ltd

"The country's housing prices will remain stable or increase. As the implementation of these tightening policies takes effect, the enlarged housing supply and improved housing structure will balance the housing price to a steady condition, but it is unlikely to drop at present."

Meng Xiaosu, professor at Peking University

(China Daily 03/02/2007 page5)