China ’s State Council recently decided to put in place measures aimed at restricting speculative real estate purchases in order to address soaring property prices, while downplaying fears that surging prices may herald a jump in inflation.

While it did not provide specific details, the council alluded to such measures as stricter oversight of banks to limit lending for speculative real estate investments. Other steps are likely to include financial and tax measures, as well as tougher scrutiny of the real estate market.

A statement issued by the National Development and Reform Commission said: ‘ We believe that consumer prices will remain at a stable level for the near term and that there is only a slight possibility for serious inflation.’

As a result of Chinas loose monetary policy, a flood of money has poured into the real estate market, resulting in sharply rising home prices in some major cities.