Graphic shows that housing prices fall month on month in most Chinese cities in 2011, delivered at the Fifth Session of the Eleventh National People's Congress on March 5, 2012. (Xinhua/Zhang Liyun)

China hopes to complete 5 million units of low-income housing this year and start construction of another 7 million units as part of an effort in improving people's living conditions, according to a government work report delivered by Premier Wen Jiabao at the parliament's annual session Monday.

"We will work speedily to improve the system for constructing, allocating, managing, and recalling low-income housing units," Wen said in the report.

In 2011, China completed 4.32 million units of low-income urban housing and began construction on a further 10.43 million units, according to the report.

Wen said China will implement and improve policies and measures to discourage speculative or investment-driven housing demand, and further regulate the real estate market.

In the meantime, China will "reform the real estate tax system to promote long-term, steady, and sound growth of the real estate market," Wen said.