Further reforms should be introduced to meet social demand for housing and burst the growing bubbles

China's housing market is once again on an irrational upward trajectory because of high demand and speculative profiteering.

According to the China Index Academy, the average price of a new home in China's 100 major cities rose to 9,812 yuan ($1,577) per square meter in January, an increase of 1 percent from December, and the eighth consecutive price rise month-on-month. It was also 1.2 percent higher than a year earlier. With expectations for further price rises dominating the market, the risk of prices spiraling out of control is increasing due to the failure of both the market and government regulations.