The move is expected to restrain skyrocketing housing prices in many cities, such as Beijing, where new housing projects were being advertised at over 10,000 yuan (1,250 U.S. dollars) per square meter in July.

Per capita gross domestic product (GDP) was only 1,352 dollars in China last year.

Details of the new policy have not yet emerged but will aim to increase the number of people renting houses and apartments so as to improve access to accommodation for medium and low-income groups, a report in the Beijing Morning Post said.

Most of China's current low-rent housing is for people on income support. Commercial residential building is very much market-driven.

The new policy will probably be issued at the end of the year, the report said.