Government curbs may cause 30% drop in Chinese house prices

China's home prices may dip 30 percent as local authorities take steps to implement government measures to crack down on property speculation. Home sales plunged nearly 40 percent by both units and floor space in 15 major cities last week, extending a streak of declines since mid-April.

China recently raised banks' reserve requirements for the third time this year, adding to last month's down-payment and interest rate increases on second mortgages.

The government is increasing efforts to avert asset bubbles after a record rise in property prices. Beijing has gone further, limiting residents in the capital to buying one new home starting this month, the first city to implement a restriction authorized by the central government.

The SE Shang Property Index of 34 Chinese developers tumbled 2.4 percent Thursday, taking this year's decline to 25 percent. China Vanke Co., the nation's biggest listed developer, fell 1.2 percent at 11:03 a.m. local time on the smaller Shenzhen bourse, extending 2010's loss to 32 percent.