The Beijing municipal government, for instance, has purchased about 1,000 commercial housing units to provide more "welfare homes" to improve living quality.

"We will help people improve housing problems by different means," Niu Qingshan, head of Chongwen district, was quoted as saying in the Beijing Times.

He said the apartments bought by the municipal government were at least 15 percent cheaper than other flats in the same district.

The State Council has set a target of 1.3 million homes for low-income families in three years while bolstering the real estate market. Beijing's move signals that the central government's directives are being followed.

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Late last month, Shanghai introduced new measures giving buyers of second homes the same preferential mortgage terms enjoyed by first-home buyers.

Adrian Ngan Wai-hung, an executive director at CCB International Securities' research department, said the mainland property market is likely to revive this year following the string of policies to boost the sector.

"There are no more austerity measures," he said, predicting that Beijing will cut interest rates further and lower bank reserve requirements.

However, property prices are not likely to rise in the first half as there is an oversupply of flats and developers will continue to discount prices, Ngan said.

He expects transactions to increase 20 percent to 30 percent later this year when the market begins to feel the effects of the policy changes.

Meanwhile, SOHO China (0410) chairman Pan Shiyi said the real estate market in the mainland has touched bottom, but it is hard to predict how long the "mess" will last.

In an interview with China Business News, he said the authorities must act quickly to stimulate the market.