China is mulling to expand its real estate tax to include more cities in 2012.

Jia Kang, director of the Fiscal Science Research Center of the Ministry of Finance, said the government is currently undertaking a review on the trial run of tax levies made on Shanghai and Chongqing. Once these are finalized, China will outline an expansion plan of possibly including "select" more cities.

"The conditions are not yet ripe for applying property taxes to the entire country," Jia said in Xinhua News.

The experience gained in the two cities will be very important to future central government decisions, Jia said in People's Daily Online, noting the property tax should always be levied on a case-by-case basis since situations differ from one city to another.

China introduced the property tax trials in the cities of Shanghai and Chongqing in January 2011 as part of government's campaign to control rising home prices on concerns of a developing real-estate bubble.

However, central bank said the property prices are close to a "turning point" with developers facing tighter liquidity, after China Premier Wen Jiabao's said last month the restrictions will not be relaxed.

Land sales in 130 major cities have dropped 30 per cent year-on-year to reach only $185 billion in the first 11 months of the year, according to data from Centaline Property Consultants Ltd.