Guidance required during housing market adjustment

According to data from the National Bureau of Statistics, the average price of a newly built house in a statistical pool of 70 major Chinese cities slipped by 0.2 percent month-on-month in May.

As with most recent signals coming out of China's housing market, this figure only adds fuel to arguments about what the future may hold in store for property values.

Actually, after years of booming development, the shift we're seeing now looks quite normal.

Developers and other industry players are feeling the strain from the cooling market, but the pains that are setting in now should prove short-lived. The key now is steering current adjustments in a healthy direction. Without the right supports, we may see some negative fallout and a delayed recovery in the market.

Real demand must replace speculation as the basis for property market growth. The government should continue to strengthen restrictions on housing investment. At the same time, authorities should also offer ordinary buyers some assurances about the future of home prices.