The State Council is organizing several institutions to conduct research into China's property market, reported China Business Herald on Tuesday.

The report said the research will target two major problems: First, why prices picked up under such a stringent restriction policy. Second, how regulators should respond if prices continue to rise.

Industry experts said the news means that if property prices in the future rise significantly, there is a possibility the State will roll out more stringent policies.

Previously, the mainstream outlook within the property industry was that the restrictive policy has reached an extreme and the State would not issue stricter policies.

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