Fall of house prices

Local governments' efforts to help lift the ailing property market can hardly stop house prices from coming down further. Nor should they intend to do that.

The ongoing correction of domestic housing prices is necessary to squeeze out bubbles to ensure long-term, healthy development of the property sector and the national economy at large.

It was reported that a number of major Chinese cities have recently moved to boost local real estate markets with various policies. Some decided to offer a subsidy for home-buyers; others cancelled restrictions on a second private property or reduced property tax.