Housing prices in China's 70 large and medium-sized cities rose 7.8 percent in December 2009 from a year earlier, and were up 1.5 percent compared to the previous month, said the National Bureau of Statistics (NBS) on January 14.

Prices of new houses in December rose 9.1 percent year on year and were up 1.9 percent from November. In December, prices of second-hand houses in the 70 cities rose 6.8 percent from the previous year, and 1.0 percent from the previous month.

The house price surges have prompted policymakers to tighten favorable policies, including down payment requirements and business taxes.