Housing reforms will be launched in Xiongan New Area to attract talent, and affordable public housing programs will be available in the early phases, according to people familiar with the project.

"The local government needs to find ways that work in the long run to prevent housing prices from soaring to unreasonable levels after the short-term ban ends. High housing costs are a major factor that prevent young, talented people from coming," said Wu Hequan, deputy director of the State Council's expert advisory committee on the collaborative development of Beijing, Tianjin and Hebei province.

The local government issued an order on April 1 banning all housing sales in the new area.