The central government is closely monitoring the property market after 18 cities including Shanghai launched various measures to arrest falling property sales, a senior official said yesterday.

Speaking on the sidelines of a press conference in Beijing, Du Ying, vice-minister of the National Development and Reform Commission (NDRC), said: "Real estate is a major sector in our fixed-asset investment, so the government is closely watching its development."

His comments came after the Shanghai municipal government raised by one fifth the mortgage ceiling of the housing accumulation fund, into which employees deposit money every month in return for lower interest rates. The measure took effect on Wednesday.