Beijing News

China is building a replica Alpine village in a grimy industrial city.

It hopes the chalets in the southern city of Huizhou will be sought after by homesick Europeans.

The village will be a £5.7billion copy of Hallstatt in Austria, complete with artificial lake. Posing as tourists, the Chinese have been photographing every building there for three years.

The copy of Hallstatt in Guangzhou China.

Real Hallstatt in Austria

China will likely loosen its restrictions on the country's property market in the third quarter of next year, as plummeting prices could slow the growth of the economy, according to a university report.

Property prices, sales and investment will fall in the first quarter of next year because of the government's tightening measures, according to a report released by the Beijing-based Renmin University of China on Saturday. It added that the possibility of a market collapse is slim.

A 20-percent fall in housing prices will force the government to adjust its policies, as a steeper decline will bring economic growth below 9 percent next year, the report said.

China's home prices fell for the first time in a year last month as a result of slack sales and tightening austerity measures, according to data released by China Index Academy.

Home prices fell an average 0.03 percent from August to 8,877 yuan (US$1,398) per square meter in 100 major cities across the country, the first monthly decline since September 2010, the property research company said.

Prices rose in 54 of 100 cities and fell in 44 cities in September from a month earlier.

On a year-on-year basis, they climbed 6.15 percent, the academy said.

Improper allocation of housing units, misuse of funds and an insufficient supply of land are undermining China's massive affordable housing program, a report by the State Audit Office said on Monday.

The office, which reports to China's cabinet, said 4,428 affordable homes were kept vacant for too long, 4,247 units were allocated to unqualified families, and another 4,407 units were used for purposes other than providing shelter for low-income families.

The State Audit Office released the data as part of implementation of the government's budget in 2010, when it also disclosed local government debt.