Residential property prices in major Chinese cities picked up in October, according to Government data, as people scrambled to buy amid fears that tax breaks and other favourable policies may soon be withdrawn.

Prices of real estate in 70 medium and large cities in China increased by +3.9% last month from a year earlier and +0.7% from September, according to the National Bureau of Statistics.

October marked the fifth successive year-on-year increase after the index slumped in the six months from December due to Government attempts to rein in runaway prices and as the global economic crisis kicked in. Beijing has introduced a series of measures in the past year, including tax breaks, to support the real estate sector, which accounts for more than 20% of urban fixed investments, a key driver of China’s economic recovery.