In February 45 out of the 70 cities monitored reported month-on-month decreases in prices of new commercial residences, according to data from the National Bureau of Statistics. Meanwhile, 21 cities recorded no price changes, and only four experienced price increases.

As for second-hand homes, prices in 45 cities dropped month on month in February, and only 11 cities saw their prices increase. Prices stayed unchanged in 14 cities.

The downward trend will continue into the rest of the year, said Feng Lianlian, an analyst with Beijing-based Homelink Property, citing property developers' rising debt pressure and the government's firm stance to control high home prices.