Potential apartment buyers in Hangzhou, capital of Zhejiang Province, line up the night before an apartment complex opens for sale. With soaring housing prices, it is the second instance of locals forcing a developer to sell apartments as early as possible. [China Daily]

Thirty-year-old Liang Changhong has wanted to buy a two-bedroom apartment in Shanghai for years but, with his wedding approaching, he thinks the soaring price of housing is getting beyond his reach.

"It has never been so difficult," said Liang, who went to a housing trade show in the hopes of finding a good deal. "I have missed my chance to get a home at a reasonable price. And now, if I take on something I can't really afford, I face decades of hard work trying to pay the mortgage."

Liang, an office worker at a foreign manufacturing company, said many sellers at the trade fair were reluctant to reveal homes' selling prices.

"Few booths shared the prices," he said. "Maybe they want to be able to charge people more, if they get the right customer."

Liang hopes to find a home for less than 15,000 yuan per sq m. Currently, he is bidding no higher than 17,000.

Rumors that the state banking regulator will call an end to the favorable mortgage policy next year have driven homebuyers into the housing market.

Figures from the National Bureau of Statistics of China (NBS) show that the average housing price in 70 major cities rose by 3.9 percent in October compared to the same period 2008. It was the sharpest monthly growth for 14 months.

"Currently, the housing supply in Shanghai can only satisfy demand for less than two months," said Chen Sheng, director of the China Index Academy. "As a result, property developers want to sell their remaining houses at a higher price, and buyers are keen to buy one before the price rockets again."

According to housing consultancy E-House (China) Holdings Ltd, the average home in Shanghai shot up from 12,140 yuan per sq m in February to 16,780 yuan in October - a rise of 38.22 percent.

The China Index Academy says things were no better in Beijing. Homes there reached a record high of 17,509 yuan per sq m, up 9.74 percent month-on-month.

Meanwhile, there are fewer homes available. Total floor space on the market fell by 30.3 percent on a yearly basis to 13.6 million sq m at the end of November, the smallest quantity since 2008.

The record low supply led to panic-buying.