In a recent interview with China Daily, Zhang Ming, deputy director of the Institute of Finance & Banking at the Chinese Academy of Social Sciences, said China's housing prices in first- and second-tier cities may stabilize in the second half of the year upon proper policy adjustments.

Suppose people expect that housing prices have bottomed out. In that case, many pent-up demands for properties in first- and second-tier cities will be released, which are underpinned by the continuous influx of young labor and the presence of high-quality public services, said Zhang, who is also deputy director of the National Institution for Finance & Development.

"The governments of first- and second-tier cities ought to adjust their approach. They shouldn't ease (housing market) policies bit by bit but should implement a comprehensive relaxation at once."