Key words: national five measures, house price

The State Council issued strict measures to cool down rising real estate prices on March 1 before the annual Two Sessions. 

Known as the "national five measures", they include taxing the sale of primary residences as high as 20 percent, a tremendous jump from the previous 1 to 2 percent, while banks in cities with rising housing prices can increase down payments and interest rates on loans to those purchasing a second home.

"These new measures send a strong message that the new government will continue to strictly regulate and control the property market," wrote the Economic Observer.

Chinanews.com reported that industry insiders expect even stricter measures to be carried out after the Two Sessions.

Chen Baocun, a well-known real estate commentator, told Sohu.com that these policies would only cause prices on the secondhand market to spike, resulting in buyers maintaining a wait-and-see attitude in the short term.

Chen also expressed that while this might be a short-term solution, specifics of these new measures will be difficult to carry out, and real estate prices will eventually rise. 

The China Times calls the measures "contradictory," saying "they're attempting to drive down soaring housing prices by tightening up the supply of land in cities with already expensive markets." 

The reason behind the rising market prices are not limited to property development, and may include other factors, said the paper, without naming specifics. However news portal gmw.cn blames the skyrocketing property market on government interference, illegal loans from banks and corrupt officials laundering money through the purchase of real estate.

@360deepblue: There are two possible outcomes for the 20 percent income tax levied on transactions: it will either ultimately transfer to buyers and promote the price of second-hand market, or it may impact second-hand transactions but guarantee the sale of new houses and maintain land prices.

@Dong Fan: The soaring real estate markets in big cities are a reaction to limited purchase policies and excessive administrative interference. These ongoing control measures will hardly be able to reign in prices, and may even exacerbate them. 

@Ren Zhiqiang: These new measures are basically trying to cover up a lack in housing supply through restraining demand. This is absolutely not an effective and long-term way of solving the problem. The heavier levies on secondhand transactions, which intend to crack down on real estate speculation, will push even more buyers into the new property market and hurt the overall majority.