Let property market adjustments run their course

As China's property market cools, local government budgets are getting frayed by crumbling demand for land. As many know, land transfers represent a huge source of fiscal income for authorities.

Official data show revenue from such transfers hitting 1.08 trillion yuan ($174 billion) in the first quarter, accounting for 55 percent of total local government income.

To stimulate demand, several localities have eased housing purchase restrictions. But such measures will only give the market a short-term nudge.

The adjustments taking place in China's property market are quite normal and governments need to give the forces of supply and demand broader sway. The current challenges cannot be solved with policies or decrees. Administrative meddling will only make the current situation worse and delay a market rebound.

Authorities should take this opportunity to shed their dependence on land transfer fees and carve out new income channels. Top leaders can help this process by pushing forward reforms which redistribute the transfer income share that goes into central coffers.