Chinese Ministry of Construction urged China's local governments to strengthen control over rising housing prices.

According to a real estate market report released by the Ministry of Construction here Monday, the average housing price nationwide in China during the January-August period reached 2,749 yuan per square meter, a year-on-year growth of 13.5 percent, up 6.9 percent over the first quarter of this year.

Officials from the ministry said the main reason for surging prices is the imbalance of housing structure on the real estate market.

The ministry said the reduced supply of economy houses nationwide is the first factor of the imbalance. From January to August, though the national investment in the economy houses increased 4.4 percent year-on-year, its proportion among the total real estate investment dropped from 6.2 percent to 5 percent, and the supply was cut even more in some places.

In some places, the improper advertising by housing developers and the media also resulted in temporary rise of housing prices. Surging prices of land and construction materials also bring about increasing prices, said the ministry.

To ease the pressure, the ministry urged all local governments to strengthen adjustment of the real estate market by increasing the supply of cheaper and affordable houses.

The ministry will also tighten supervision of all local governments in the control of land supply, and take steps to cut investment in non-dwelling and luxury houses, and increase the land supply to low-price houses, so as to solve the problems with the imbalance in real estate market structure.

The ministry will also offer proper guidance to consumers for their real estate investment.

Source: Xinhua