Land transfer

Tang explains that housing development is essentially about. In actual practice, the land is "taken over" from peasants at a low price and given to the highest bidder for development - with future home buyers paying for all this.

A portion of the home value flows back to the government in terms of land use fees, fueling a huge amount of urban prettification projects, which then translate into staggering GDP growth. The island Hainan Province has just achieved a staggering first quarter GDP growth of 25.1 percent. If officials still feel compelled to justify the island's soaring home prices during that quarter, that dazzling figure can be all-redeeming.

To tackle the issues, China must first of all slow down, said economist Zhou Shulian in his article published in Study Times, a journal of the CPC Party School.

Only by slowing down can China avoid further exacerbating its already dangerous wealth disparity, allowing officials time for introspection, and understanding the plight of the disgruntled.