Chinese PM assures curbs to control real estate prices

As realty prices in major cities showed signs of increase despite a host of official curbs, Chinese Premier Wen Jiabao said the government will resolutely implement real estate market regulation to curb speculation in the sector.

During an inspection tour of the city of Changzhou in east China's Jiangsu province, Wen said housing market regulation is still at a critical phase and remains a tough task.

Wen's remarks come at a time when major Chinese cities saw home prices rise mildly in June.

This had raised fears that a new price surge would begin despite recent government attempts to cool off the property market through measures, including restrictions on second home purchases and higher down payments.

Signs of rising property market were strengthened going by the surprise cut in rates announced by the central bank on Thursday.

A 25-basis-points reduction in one-year lending and deposit rates brings down the cost of buying homes and, more importantly, boosts confidence in the property market.

Wen said after years of hard work, property regulation has borne some fruit, state-run Xinhua reported.

In the first five months this year, work started on 4.7 million units of subsidised housing and 2.6 million units were basically completed.

Local authorities should push through land approval for affordable housing and invite all types of investors to participate to ensure construction progress and quality, Wen said.