Russian developers are cutting apartment prices in the regions as a decline in mortgages lowers demand for housing, Vedomosti repoted.

Sales of new apartments in Rostov-on-Don are down 40 percent this month from August, while sales in St. Petersburg have fallen by half since the spring, the Russian newspaper said. Prices have declined as much as 24 percent as a result, Vedomosti said.

Developers in Moscow, where listed prices for apartments have climbed 43 percent this year, haven't cut prices, though they probably will in two or three months, the newspaper said, citing property consultant IRN.ru.

Analysts, cited by Bloomberg, predict that home prices in major Russian cities will continue to fall.