China's home prices fall in December

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China’s efforts to curb skyrocketing home prices are now taking effect, as nearly three-quarters of its major cities saw price declines in December from the previous month, according to the central government.

Some 52 of 70 Chinese cities tracked by the government, including Beijing and Shanghai, posted month-on-month declines in new home prices, up slightly from 49 cities in November, said the National Bureau of Statistics.

“If this trend continues, with property transaction volume falling, we will have to see whether China's economy can cope with it,” said Liu Ligang, Head of Greater China Economic Research for ANZ Group in Hong Kong.

Liu noted that with local governments dependent on land sales as a major source of revenue, China could roll back measures to offer some relief.

Meanwhile, according to latest figures, home sales, excluding government subsidised homes, climbed 12.1 percent to 5.91 trillion yuan (S$1.2 trillion) last year, reflecting a slowdown from the 18.9 percent increase in 2010.

The National Bureau of Statistics said investment in all types of property surged 27.9 percent year-on-year to 6.17 trillion yuan (S$1.03 trillion) last year, slowing from a 33.2 percent growth in 2010.

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