Policies not enough to prop up property market

There is a lot of uncertainty right now about whether China's real estate market will get better or worse.

On one hand, there are some good reasons why property prices have been falling. Prices have risen too high for ordinary people; developers have accumulated a stock of units; and banks have tightened lending requirements.

On the other hand, several local governments have begun to ease restrictions on home purchases and bank lending to prop up property prices. However, the government will have a hard time forcing a rebound in housing prices through policy. A China Youth Daily survey found that 74.4 percent of respondents anticipated that housing prices will keep falling. They see the government's efforts to bolster property prices as a clear sign that the market is in trouble. The survey also revealed that only 9 percent of respondents said they will buy houses in the near future.

Moreover, 63.7 percent of the respondents said they would like to buy homes but don't have the ability to do so. And 87.3 percent said that they simply cannot afford the high prices.

The survey shows that although housing prices have dropped, they haven't fallen enough for most people to afford. In major cities, housing prices have fallen only slightly. If the government continues to stimulate the property market, housing prices might well resume their upward momentum, which would kill expectations that housing prices will continue to fall.