China's economic planning agency said Thursday growth in the country's property prices quickened in May, raising the likelihood of further measures to prevent overly rapid price increases in the sector.

Property prices in 70 of China's large and medium-sized cities in May rose 6.4 percent from a year earlier, faster than the 5.4 percent growth rate in April, the National Development and Reform Commission said in a statement on its Web site.

The statement on the pickup in property prices comes a day after the State Council, the Cabinet, said it will control overly rapid increases in property prices. It also accompanies last month's consumer price inflation rate of 3.4 percent, which was the fastest gain in over two years.

Related readings:  House prices surge along Beijing's No 5 subway line  Beijing plans to bar affordable housing trading  Beijing real estate prices still high Striking a strange balance

Among recent efforts to cool the property sector, the central government on Monday directed local governments to strengthen their supervision of foreign investment in the real estate sector, especially in high-end luxury developments.

China has been grappling with the flood of liquidity resulting from its large external imbalances. Investors have put funds into the share and property markets, raising the possibility that an asset bubble is forming.

The price of newly built residential units in May rose 6.6 percent from a year earlier, 1.3 percentage point faster than in April, the agency said, adding that prices in Beijing rose 10.3 percent.

Prices of second-hand residential units rose 6.8 percent in May, up 0.7 percentage point from April.

Non-residential property prices grew 5.3 percent, up 0.4 percentage point from April, the agency said.

(For more biz stories, please visit Industry Updates)