Similarly, the government will build more affordable houses to ease the housing problems of low-income urban residents and improve the living conditions of rural migrant workers in cities, the premier said in his report.

The government will also apply a set of tax, credit and land supply measures to curb demand for high-end housing and prevent the market from overheating.

Other steps have been taken to curb rising housing prices.

Last year, the central bank raised the commercial bank reserve ratio 10 times. It has also increased the level once this year, in an attempt to curb credit growth.

The latest statement by the NDRC said housing prices remained high in January but were rising at a slower pace, as macroeconomic measures had begun to pay off in November.

Wang Jianlin, president of real estate firm Dalian Wanda Group, said prices will not decline sharply, given rising raw material costs and market demand, but will "stay at a stable level with the overall macro control policies".

(China Daily March 12, 2008)