Chinese policymakers must move faster to arrest the excessive rise in housing prices lest asset bubbles compromise the country's chances of sustaining its economic recovery.

The State Council said on Monday that the government was considering measures and policies to cool down soaring house prices in some cities. The announcement is a sharp departure from the government's previous favorable policies to encourage the growth of the property market with tax breaks and cuts in interest rates.

As a key source of investment growth, the unexpected boom in the housing market has undoubtedly played a crucial role in helping lift the national economy out of the worst global recession in decades. While the housing markets in some major developed economies were still suffering bitterly from the dire consequences of bursting bubbles, China's housing sector returned to positive growth on a month-on-month basis in March this year thanks to record lending and policy support boosting property-related investment.