On Monday, the National Bureau of Statistics released the data for housing prices among 70 large- and medium-sized cities in May. The price of new housing has stayed stable but the price of second-hand housing has significantly changed in many cities.

Yet residents in many first-tier cities, such as Beijing, Shanghai and Shenzhen, have sensed a rise in housing prices, contrary to the statistics. Meanwhile, according to tip-offs from some companies and related institutions, the sales volume has overtaken 10 billion yuan ($1.57 billion). Real estate is heating up again after a period of cooling.

Though there have been high claims made about the strict control of housing prices, the overall macro-economic situation is not optimistic.

A survey carried out by the Capital University of Economics and Business and the Chinese Academy of Social Sciences revealed that residents in 32 cities out of 35 surveyed predict a continuing rise of housing prices.

As prices recover, the public is panicking. We should notice that related institutions, such as the People's Bank of China and the Ministry of Housing and Urban-Rural Development, have refuted the rumors instantly. Their attention to the rebound of the housing price will help stabilize the public's expectation.

The success in regulating and controlling the real estate industry largely depends on whether or not home buyers are provided with a stable anticipated price.

A short-term policy can only trigger a fluctuation of housing prices which is harmful to the economy, the developers and the buyers. The government should stick to regulation and control of the industry.

The Beijing News