Implementation being tested

To ensure that the government's policies are strictly enforced and emerging problems are handled properly, the Cabinet has sent eight inspection teams, all headed by high-profile officials, to 16 provincial level regions to supervise the implementation of the policies since the beginning of April.

At the top of the inspectors' agenda is finding answers to following questions: Whether the housing control target was made after social surveys? Where did the capital for low-income housing construction come from? How can land supply be in place for planned construction?

Following the announcement of tightening policies, worries surfaced over whether local governments set reasonable and practical targets and were able to put them into practice.

Chen Guoqiang, a real estate expert at Peking University, said local governments should take a variety of factors into consideration before setting local targets. Growth of local GDP and average per capita income should not be considered lightly.

Another concern is how local governments can reform fiscal systems to become less dependent on land revenue, said Zhu Zhongyi, Vice Secretary-General of the China Real Estate Association.

"The central government has regarded urban housing problems as having already affected the country's overall progress. Governments at different levels are required to spare no effort in keeping housing prices on the right track," said Yun Xiaosu, Vice Minister of Land and Resources.