"If the government does not escalate controls, prices in some major cities will run out of control," said Yang Hongxu, vice president with Shanghai-based R&D Institute of E-house China.

Chinese housing authorities have not yet signalled any clear movements but said they have enough policy reserves in times of need.

"Until recently, government authorities have basically agreed that home prices in certain cities have grown too fast," said the source with the Beijing housing authorities.

Market analysts have listed several policy possibilities, such as banning loans from public housing funds and raising the down payments for second-home buyers.

However, an unnamed person with the Ministry of Housing and Urban-Rural Development said the ministry has not researched on banning loans from the public housing funds.

Other measures may include raising transaction-related taxes and increasing land supplies, according to Yang.

He said the new policies will be more targeted in some major cities in consideration of regional differences.

"Coordinated efforts from the ministries and departments are needed to bring the price rises under control," he said in the report.

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