BEIJING, Feb. 17 -- China's real estate market has extended its downward trend with new home prices in January registering month-on-month declines in most cities surveyed.

Price trends in first-tier cities and smaller cities continued to diverge, with those in the big cities showing more resilience.

Of 70 large and medium-sized cities surveyed, new home prices dropped in January in 64, according to the National Bureau of Statistics (NBS).

New home prices were flat in Shanghai, Nanjing, Nanchang and Guangzhou last month, while Shenzhen and Ganzhou saw prices rise 0.3 percent and 0.2 percent respectively. For existing homes, prices fell in 61 cities, while only six recorded gains.

NBS statistician Liu Jianwei said the housing market in the four biggest cities stabilized in January while prices in second-tier cities dropped more slowly. Price in third-tier cities remain in freefall.

An index of new home prices in first-tier cities rose for the second month in January, Liu said. Only Beijing saw price drops in January, with the rates of decline for both new homes and existing homes smaller than 0.2 percent.

Property researcher CRIC said housing prices are unlikely to rise in 2015 as there is oversupply in most cities.

Bank of Communications said in a report on Tuesday that property transaction volume will remain weak in February but will recover slightly in March. The bank expects restrictions on home purchases to be further loosened and the credit environment to improve after Spring Festival.

The cut in reserve requirement ratio in February will boost capital liquidity in the property market, make commercial banks more willingly to lend, reduce developers' financing costs and lower rates for personal mortgage loans, said the bank.