Home prices in China fell for the second consecutive month in October 2011, according to a report from SouFun Holdings Ltd.

Prices dropped by 0.23% in October and in 58 of the 100 cities tracked by the company, including Shanghai and Beijing.

The report attributed the declines to continued government tightening measures and a credit crunch. Those factors led large developers, such as Vanke Co Ltd and Longfor Group, to start cutting prices to stimulate property sales in China’s first and second-tier cities.

Premier Wen Jiabao stated that the government will “firmly” maintain its control over the property market even as it seeks to “fine tune” other economic policies.

Restrictions on housing purchases have been imposed on various cities with Zhuhai in Guangdong province, the latest city to do so. A license will only be granted for the advanced sale of a home if the price is below 11,285 yuan ($1,776) per sqm, according to a statement on the city government’s website. It will also only allow one new home purchase per family in its central district.