Beijing on Friday announced some of its most sweeping measures yet to stabilise and revive the country's beleaguered property sector, allowing local governments to buy "some" apartments, relaxing mortgage rules and pledging further efforts to deliver unfinished homes.

Earlier, fresh data showed the fastest drop in new home prices in more than nine years, highlighted continued problems for an industry which at its peak accounted for a fifth of economic activity and remains a major drag on confidence and growth.

Vice Premier He Lifeng told an online meeting with other authorities that municipal governments could buy homes at "reasonable" prices.

The homes would be used to provide affordable housing, He said.

The vice premier also said local governments could repurchase land sold to developers, and promised authorities would "fight hard" to complete stalled projects.

Separately, the People's Bank of China said it would further lower mortgage interest rates and down-payment requirements.

Shares in Hong Kong-listed Chinese developers soared following the announcement. (Agencies)