China invested 769.5 billion yuan in real estate development during the first half of this year. This is an increase of 24.2 percent, and it happened 0.7 percent faster than in the same period of last year.

In 70 major cities, houses were sold at a premium of 5.6 percent, 3.3 percent lower than the rise in the same period of last year.

However, housing prices went up in areas where developers hesitated to implement or attempted to neutralize the central government's policy on adjusting the supply structure and stabilizing prices on the housing market

A resolution circulated by the General Office of the State Council in May announced six new macro-controls for the property market. Last week the Construction Ministry released more information to facilitate the implementation of the resolution, taking care to clarify concepts that might be misunderstood.

The publication of more comprehensive guidelines has to some extent eased concern about whether the policy can be fully implemented and therefore be effective. It gives those who were taking a 'wait-and-see' approach a signal that the new macro-controls must be taken seriously.

This is only one in a series of actions that the government has taken since last year in a bid to aid the ailing real estate market. The market has been plagued by overheated investment, soaring prices and an imbalanced structure. The intensive, harsh campaign against one particular industry shows how determined the government is. Adapting to policy and exploring the opportunities that the change will bring is the best way forward.

Penalties may be imposed on developers who manipulate housing prices �C they are not as morally committed to building houses as one might expect. It comes down to local governments to improve the availability of affordable housing for mid and low income earners. Local governments must act quickly to adjust the housing supply structure and curb the growth in housing prices so the public may benefit as early as possible.

By People's Daily Online