Property prices have been declining gradually over the first half of the year. Rents, however, have shot up during the same period, triggering debates over whether such a spiral has been reasonable or not.

Average apartment rentals in Beijing have spiked 18.5 percent year-on-year, touching nearly 2,800 yuan in the first half of 2010, according to the latest available data.

Rents in Shanghai, Guangzhou, Shenzhen and other major cities also saw rapid increase between January and June this year. The average rental has exceeded the average monthly incomes of many fresh college graduates and migrant workers in major cities.

Analysts are divided on the reasons behind surging rents. Some have attributed it to rising demand from fresh graduates seeking apartments for rent during the peak summer season. Others have argued that tightening measures introduced to cool the property fever in the first half pushed many potential buyers into opting for rented accommodation instead.

Still others have questioned the role of real estate agents, who, they say, may have colluded to boost profit margins by freezing the supply of homes for rent.

Be that as it may, authoritative analysis after due investigation by the regulators has been missing, making any such speculation unconvincing.

Specific policies targeted at rental reform need to be drafted quickly to stanch market speculation and stabilize rents.