Urban housing policies should not be relaxed

Property prices and development will be one of the core issues during the sessions of the National People's Congress (NPC) and the Chinese People's Political Consultative Conference (CPPCC) National Committee.

Over-speculation in the real estate market supported by a loose credit policy from 2009 to 2011 created a huge property bubble. Responding to the public's concerns, the government has sought to return property prices to a rational level by introducing regulatory measures. However, the more bite the policies have had, the more barriers they have encountered, especially when sales declined recently and housing prices in some cities started to fall.

Some local governments have used "soft" measures, such as preferential policies for local buyers of high-end properties or promoting the idea that a fall in prices will lead to a subprime crisis in China, as a means of countering the central government's regulatory initiatives. And some organizations such as the Chinese Real Estate Association have lobbied the central government by submitting written statements on behalf of the developers demanding changes to the current regulations.