'Home prices to continue to increase'

Housing prices will rise more slowly in the second half than in the first, but upward pressure will persist, prompting experts to call for "long-term" policies that can be adapted to market forces.

"Local governments face great embarrassment because their property curbs have become increasingly irrelevant to the market," said Yang Hongxu, vice-president of the Research Institute of E-house China, at a recent symposium in Shanghai.

In March, the central government announced a 20 percent capital gains tax on pre-owned home sales. Several cities announced detailed policies of their own at the end of March.