China's continued tightening of regulation policies on its property market has affected sales of both new and existing homes in Beijing.

Latest data by Centaline China Property Research, the city's housing regulator, showed sales of new home in Beijing fell 18.4 per cent to only 90,605 units in 2011 compared from a year ago, the Beijing News reported Monday.

Sales plummeted 22.4 per cent to 9.56 million square metres in 2011 in terms of square footage, representing a fall below 10 million square metres for the first time in six years.

Increased downpayment requirements and mortgage rates, together with imposed limits on home purchases triggered the declines, Beijing News said, citing Zhang Dawei, a chief analyst with Centaline Property.

Also down were existing property transactions, which shrank 38.2 per cent to 121,512 units sold in 2011, connoting a three-year low.

Mr Zhang forecast Beijing property prices will fall 10 per cent to 20 per cent in the next six to 12 months. China had repeatedly said will maintain implementing its current policies to regulate the country's property market sector, as it works to return housing prices to a reasonable level.

Monthly sales of existing homes have remained below 10,000 units since April, the Beijing News said.

In April 2010, China started introducing a series of tightening measures to bring property prices down, including bank lending restrictions, placing a trial property tax in Shanghai and Chongqing cities and imposing a ban on third-home purchases.

In December 2011, China said it will fast track the construction of 36 million units ordinary commercial residential housing over the next five years to increase housing supply and promote the healthy development of the property market. This will give mid- and low-income households access to housing and stabilise runaway property prices, with 10 million units planned for both 2011 and 2012. As of November 2011, the country has started construction of 10 million units.