China will continue policies to stabilize housing and land prices and market expectations, said Wang Menghui, minister of Housing and Urban-Rural Development Tuesday.

In a so-called "minister's passage" interview at the annual meetings of China's national legislature and top political advisory body, Wang emphasized that houses are for living – not for speculation.

"Local authorities need to improve market mechanisms, and apply appropriate policies and regulations in accordance with their own situations, to stabilize market expectation, the price of land and housing, and prevent sudden price increases or slumps," said Wang.

He said that the property market has seen a slow-down in the trade volume of houses, gradually stabilizing house prices, and increasingly rational market expectations.

He said the ministry will encourage the rental market and maintain consistency in housing policies and regulations.