"Demand is big, while land supply is limited. So pressures caused by rising prices are still mounting," said Jiang Weixin, minister of housing and urban-rural development (MOHURD) at a press conference held on the sidelines of the annual session of the National People's Congress, the country's top legislature.

However, the central government has a strong determination to curb runaway housing prices, he noted.

Asked about comments on hefty land-transferring fees which have become a main source of revenue for local governments, Jiang said while this is true, soaring retail prices also add pressure and require more efforts by local governments to maintain social stability.

Driven by record bank lending and favorable tax breaks, China saw a sharp residential property price hike nationwide during the past year, triggering heated public complaints and fears of possible asset bubbles.

China's home prices in 70 large- and medium-sized cities, considered a housing price trend barometer, climbed 9.5 percent in January 2010 from one year earlier, the fastest growth in 19 months.