The strong rise in house prices in March is not surprising as the latest price control measures prompted buyers to buy rather than wait.

Property prices rose in 68 of 70 major Chinese cities in March, up from 66 in February, according to the National Bureau of Statistics. But the higher house prices in March are obviously a result of a temporarily distorted market, as buyers and sellers look to act before the latest government real estate measures come into effect.

The central government said on March 1 that it is planning to introduce a 20 percent windfall tax on property sold within five years of its purchase if the seller has more than one property. It also announced it will raise the down payment requirements and mortgage rates for buyers that already own property, with Beijing already taking the lead in implementing the hikes.