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China's macro control policies aimed at containing soaring housing prices have brought "positive changes", the government has said.

"The overall situation has improved," the cross-ministry body mandated to coordinate the macro controls said in a circular made public Friday.

The circular, addressed to all central departments and regional governments, was the result of a massive probe into the housing markets in Beijing, Tianjin, Guangdong and eight other provinces.

The State Council, China's cabinet, dispatched senior officials from the Ministry of Construction and other central authorities to the regions in late September to gauge the impact of the macro control policies.

The circular says by the end of September, 276 cities had published housing development plans, a highlight of which is the building of more smaller and affordable houses.

The building of houses with a floor space of less than 90 square meters per unit is a key part of the government's macro control policy issued earlier this year.

The policy stipulates that such houses must account for 70 percent of new houses built in any city.

As rapid urbanization drives millions of Chinese into cities and boosts the demand for housing, smaller, cheaper houses are deemed a more effective way of accommodating the rising numbers of urban dwellers than trying to bring down unit prices.

Another major plank of the macro control policy is the building of more cheap houses that can be rented to poor people, a concept started in 2003.

According to the circular, by the end of September, 268 cities at prefecture level had introduced this system, compared to 221 at the end of 2005. Twenty-six regions have listed it as a criterion in assessing the performance of mayors.

The circular reveals that 65 percent of cities at prefecture level and 91.1 percent of cities at county level have not yet published their housing development plans, while cheap houses for rent to poor people are still not available in 19 cities at prefecture level.

The circular warns them to act before the end of the year or face sanctions.

It admits that housing prices have been rising quickly in some cities in defiance of macro control policy.

In October, prices of new commodity residential houses in 70 major cities grew by 6.6 percent year on year. Prices in Beijing have been rising at two-digit rates since August.

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