According to the data released by the National Bureau of Statistics on Monday, the average new home prices recorded an increase of 2.1 per cent during the month of February in China.

The prices increased in a total of 62 cities of the 70 cities tracked by the government in the country during the month. The average new home price increase 5.9 per cent in Beijing and 8.1 per cent in Guangzhou. The increase in the country is the highest recorded since December 2011 and comes at a time when the government is aiming to control the housing prices in the country o averse a property bubble.

The central government is looking to cool the property market in the country through a new property tax. The central government is planning to step up efforts including higher income tax on homeowners who make profits from the sale of property. The government announced capital gains tax of 20 per cent on profits made from selling residential property in the country.

Higher interest rates and down payments will be imposed on purchase of second property in cities that have rapidly rising prices of real estate. The government has relaxed property ownership restrictions in recent times and large amount of money was invested in the property markets, resulting in rising prices of property in the country.