Dec. 14 (Bloomberg) -- China’s government will target “excessive” growth in property prices in some cities, the official Xinhua news agency reported, citing a meeting of the State Council.

The government plans to “speed the construction of low- cost housing” and strengthen supervision of the real-estate market, Xinhua said today.

China’s property prices climbed last month at the fastest pace since July 2008, adding to concern that record lending may fuel unsustainable asset-price increases in the world’s fastest- growing major economy. Asset bubbles are the No. 1 threat to financial stability in Asia, posing a bigger danger than inflation, Norman Chan, the head of Hong Kong’s de facto central bank said today.

“Avoiding a property bubble will not be easy,” Wang Tao, a Beijing-based economist with UBS AG said in a Dec. 10 report. “Just when we thought that growth of housing starts and property sales could begin to slow after months of charging ahead, the November data just blew us away.”

The State Council said last week that the government will re-impose a sales tax on homes sold within five years, after cutting the period to two years in January.

The government should “maintain the continuity and stability of its policies” and curb “the excessive growth in home prices in some cities,” Xinhua reported today.

November’s price increases were led by the eastern cities of Hangzhou, Nanjing and Wenzhou.

Property sales by value jumped 86.8 percent to 3.6 trillion yuan in the first 11 months of the year. By floor area, sales rose 53 percent to 752 million square meters. Investment in property development rose 17.8 percent.