Iron ore out of the port of Qingdao in China slumped 4.4 per cent to $US71.80 a tonne, taking its total decline for the year to more than 46 per cent as oversupply and ongoing concerns over China's economy continue to put pressure on the commodity.

The steep fall moves iron ore closer to bearish forecasts that suggest its price could slump below $US60 a tonne next year because of ructions within the Chinese property market.

On Tuesday, data from China's National Bureau of Statistics showed that average price of new homes across 69 of 70 Chinese cities measured slumped for the sixth-straight month in October. In the year to October, prices fell across 67 of 70 cities.

"The key issue right now with regards to the Chinese property market is that supply continues to rise, which on face value would be positive for steel consumption and the iron ore price," Deltec chief investment officer Atul Lele said. "But it's coming in an environment where demand for property is actually remaining quite weak."

China's residential property market accounts for around 24 per cent of steel consumption in the world's second largest economy.

"We believe it represents the biggest risk to the Chinese and global economy," Mr Lele said.

Last week, Citigroup said it had been "bearish but not bearish enough on iron ore prices, and slashed its forecast for the next two years to $US65 a tonne, from about $US80. At the same time, ANZ joined the chorus of doomsayers, predicting iron ore is unlikely to rise above $US100 again.

UBS has backed mounting concerns of a persistently low price, saying on Tuesday that it is "now or never" if the commodity is to bounce back before the end of the year.

Australia's mining sector, mining magnates and federal budget position have all taken a massive hit this year from the falling price of iron ore.

Analysis by The Australian Financial Review has shown more than $10 billion has been wiped off the value of Australia's four key pure-play iron ore miners alone in 2014.

In the year-to-date shares in BHP Billiton have slumped 12.7 per cent, while rival Rio Rinto have fallen 12.8 per cent.

However, these larger diversified global miners have a much lower breakeven prices than second-tier iron ore pure plays meaning they can weather low commodity prices.

According to UBS analysis, BHP and Rio have breakeven costs around $US45 and $US49 per tonne respectively, once a number of adjustments for things like quality, moisture and freight have been made. However, UBS analysts noted that the Australian dollar has fallen since September, when the research was last published.

Shares in Fortescue Metals have dropped 49 per cent so far this year, while Atlas Iron has lost 81.3 per cent, Arrium has shed 81.9 per cent and BC Iron has suffered the most, falling 87.4 per cent. Breakeven costs for the four smaller miners were $US73 per tonne, $US82 per tonne, $US80 per tonne and $US80 per tonne respectively.

with Ben Woodhead