Xinhua criticizes real estate market

China's Xinhua news agency has released six commentaries on China's high real estate prices.

The commentaries say over-speculation, the reliance of local governments on land sales for income and the current land auction scheme all need to be addressed to cool China's sizzling property market.

China's runaway property prices are making the housing un-affordable even for the country's middle class. Although the government has repeatedly taken measures to control the market, housing prices remain untamed. Xinhua's commentaries point out that the problem has become pressing.

On March 28th, Xinhua stated the real estate sector is creating a market bubble and the reliance of China's economy on the real estate sector cannot be sustained. The housing problem has restricted Chinese people's overall consumption.

The agency's commentary on the following day said real estate has become a paradise for speculators. In recent years, speculative capital was pulled in by the huge profits of the sector, forming an illusion of prosperity. The article says the bubble will eventually burst.

In its third commentary on March 30th, the agency said corruption has added to the cost of housing price. To curb corruption, it is necessary to make the process transparent and introduce public supervision.