House price declines are spreading throughout China as gloom takes hold in the real estate markets.

In October, 34 out of 70 monitored major cities reported month-on-month drops in prices of new commercial residences, up from 17 in September, said the National Bureau of Statistics. Meanwhile, only 16 cities experienced price increases, compared with 24 in the previous month. Prices stayed unchanged in 20 cities.

As for second-hand homes, prices fell in 38 cities in October, increasing from 24 in September. Only 13 cities saw their prices head north.

Policymakers have recently reiterated their firm commitment to letting air out of the price bubble. Property developers also appear more willing to lower prices this year as they look to withdraw as much cash as possible from a cooling market and lower housing inventories that are reaching record levels in some cities.

China Vanke Co. Ltd., China's largest developer by market value, reported sales of 10.34 billion yuan ($1.63 billion) in October, plunging 33.3 percent from a year ago.

Liu Yuanchun, Associate Dean of the School of Economics at the Renmin University of China, expected the country's house prices to fall by less than 25 percent in 2012.

"Despite the price drops, the market remains far from a collapse given its importance for local governments and the Chinese economy," he said.