Realty sector needs more balanced regulation

City governments across China have thrown everything but the kitchen sink at their real estate sector in an attempt to dampen demand and prevent a bubble from developing in the property market.

In the first two months of this year, China's real estate investment increased 8.9 percent year-on-year to more than 985 billion yuan ($143 billion), and sales jumped 26 percent to over 1 trillion yuan, according to the National Bureau of Statistics.

Despite the mild increase in home prices, as noted by the NBS, those who are selling or buying homes in big cities such as Beijing have actually found that prices have risen strongly in recent months. This fast rise, reported by the media, has further prompted potential buyers to swarm into the market, which in turn has further pushed up prices creating, in the process, a vicious circle.