The China Story: Country grapples with runaway property prices

For most Chinese, owning a house is as much a necessity as it is a dream. And, for the Chinese government, making more houses available for the common people is one of its policy priorities.

The residential housing market now accounts for more than 70 percent of all property development in China. But only 10 years ago, the vast majority of people lived in housing provided by their work units, often in cramped conditions.

The housing reform program introduced in the late 1990s has encouraged greater participation by the private sector, resulting in a huge increase in supply. Many homebuyers are taking advantage of the widening availability of bank financing to acquire their first homes.