Housing prices will rise more slowly in the second half than in the first, but upward pressure will persist, prompting experts to call for "long-term" policies that can be adapted to market forces.

"Local governments face great embarrassment because their property curbs have become increasingly irrelevant to the market," said Yang Hongxu, vice-president of the Research Institute of E-house China, at a recent symposium in Shanghai.

In March, the central government announced a 20 percent capital gains tax on pre-owned home sales. Several cities announced detailed policies of their own at the end of March.