(Yicai Global) Jan. 6 -- House prices fell in Chinese cities last month compared with November, according to a market report from a well-known real estate research institute.

The number of cities where prices fell also increased, the report published by the Chinese Index Academy showed. It gave now reasons.

The average cost of a new home was CNY16,180 (USD2,538.48) per square meter in December, down 0.02 percent from the period month, with the decline narrowing 0.02 percentage point, according to the report.

Fifty-eight of the 100 cities surveyed saw a month-on-month drop, five more than in November. From a year earlier, prices rose 2.44 percent, slowing 0.28 point from the prior month, the report said.

The average cost of a lived-in property was CNY15,999 (USD2,510.08) per sqm, down 0.09 percent, with the decline widening 0.01 point. Prices fell in 71 cities, three more than in November. From a year ago, prices rose 3.27 percent, slowing 0.39 point on November.

The report said the short-term adjustment and controls on the housing market may be coming to an end. Some cities where the market has cooled too fast are likely to roll out supportive measures.

But in the short run, market sentiment will remain sluggish, and it will take some time for sales to pick up, the report said. Moreover, the government’s focus this year will be to guarantee the delivery of homes as well as ensure people’s livelihood and market stability.

The authorities and property developers could also look at new models for the sector’s positive development, it added.

Editor: Peter Thomas