China's city governments and ministries have been told to build more low cost housing and speed up construction to help ease property prices.
A state directive sets out measures aimed at helping first-time buyers and discouraging speculators, particularly from overseas.
The BBC reports China's leaders are worried that house prices in many cities are rising too fast now.
If too many Chinese are priced out of the market, it could stir economic and social instability.
In 2009, China's bank issued $US1.5 trillion worth of new loans to help ease the country through the financial crisis.
It is thought about one-sixth of the total flowed into the property sector and there are some in China who now worry it is overheating.
