REAL estate prices in China are in no condition to rebound with the government firmly set to continue regulating the property market, said the Ministry of Housing and Urban-Rural Development.

Despite a rise in sales in recent months, speculative buying is still under control, and both property prices and housing inventories have remained at a stable level, a ministry official was quoted by yesterday's People's Daily, the flagship newspaper of the Communist Party of China, as saying.

The recent rebound in home-buying activities is due to higher demand that had been suppressed and by an increase of new housing supply and lower loan rates, said the official, whose name was not provided by the newspaper.

Though expectations of price rises have spurred some rush-buying in June and July, in general, most house buyers are looking for starter homes instead of speculative deals, said the official, who expects the completion of more affordable housing will further stabilize market expectations.

In August, the government tried to curb the bounce-back of sales by reiterating its firm stance on property tightening, which has started to pay off, the official said. Meanwhile, new commercial properties that started construction fell 11.1 percent from the same period last year, down 2.3 percentage points from the January-July level.

But the official also noted that negative factors do exist against a stable property market, and that regulation over the sector is still at a crucial stage.

沪江英语快讯：让老百姓可以吃颗放心丸的还有标准普尔发布的最新报告，报告显示过去六个月中国房地产业由于流动性增强和销售量增加，房地产开发商信用和整体行业状况有所改善，但前景仍不容乐观，预期下半年中国住宅楼价平均再跌5%。经济学家马光远特别建议，要减少老百姓对房地产市场的担心，调控政策执行到位尤为重要。