The government will work to control the overheated property sector and keep housing prices at a reasonable level.

"The real estate industry should focus on developing reasonably priced commercial housing for ordinary people," Premier Wen Jiabao said in a report on government work at yesterday's opening of the annual session of the National People's Congress. "We will improve the supply structure of commercial housing, and strengthen oversight and regulation of housing prices."

According figures from the National Bureau of Statistics, the average price of newly built commercial residential buildings in 70 big and medium-sized cities nationwide rose 6.1 percent year on year in January.

Wen said the state will address the housing woes of low-income families. "We will increase fiscal and tax policy support and set up a sound system of low-rent housing."

He said China will strengthen oversight of the real estate sector and crack down on law-violating activities .

Inaction by local officials is widely blamed for the surging housing prices. "Many of them see the real estate sector as a major economic growth pillar. As a result, they are unwilling to implement centrally set measures to cool off the overheated property sector," said Wang Changde, a member of the National Committee of the Chinese People's Political Consultative Conference.