Housing prices expected to drop in 2012

BEIJING - Housing prices are expected to drop slightly this year, according to a real estate industry report released by a government think tank on Thursday.

The Chinese Academy of Social Sciences claimed in its paper that there is "almost no possibility" of an increase in property prices this year.

The paper said first-time homeowners may not benefit from real estate market regulations, as falling housing prices may not counteract increased first-time buyer costs that have resulted from the implementation of new real estate industry regulations in 2011.

Authorities should move more quickly to formulate new property tax laws, as well as create regulations for the evaluation of property, the paper said.