Residential buildings are seen in Beijing. Photo: Reuters/Jason Lee

Beijing must dampen speculators in the housing market to prevent price fluctuations, said Xu Jianyun, Beijing Municipal Commission of Housing and Urban-rural Development, the Securities Times reported.

Xu explained that to curb speculation, the government should use policy measures such as tax revenue and financial loans comprehensively.

At the same time, rental housing should be further promoted and the market should have an effective inspection system in place.

According to the newly published Urban Planning of Beijing report, the city will build up several different types of housing, including commercial, public and rental units, as well as homes with shared property rights over the coming five years.

The plan also emphasizes the importance of protecting the old town in Beijing, urging the government to firmly comply with the requirement that the old town must not be torn down any further.