The average price of second-hand homes in January in 100 key cities was 14,902 yuan per square meter, down 1.05% from the previous month, the 21st Century Business Herald reported, citing data from Zhuge.com. It was the fifth consecutive monthly drop.

According to the report, prices in second-tier cities are significantly affected by the tightening of housing regulations, resulting in downward pressure on the market. The average price of second-hand housing saw the largest month-on-month decrease of 1.14%, compared to that of first- and third/fourth-tier cities, which declined by 1.02% and 0.99% respectively.

Among the key second-tier cities, Nanjing, Suzhou, Hangzhou, Chengdu, Wuhan and Chongqing all experienced a significant reduction in transaction volume in January, with Wuhan having the largest decline, reaching a staggering 51.11%.

Analysts believe the price of used homes in second-tier cities will eventually rebound and stimulate market demand. The acceleration of the urbanization process, the reform of the household registration system and the moderate relaxation of the regulatory policies should all contribute to the latter.