New home prices in Shanghai rose 5.6 percent in August from a year ago while those in Beijing increased 3.0 percent.
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Helped by a barrage of government support measures, home sales and prices have gradually improved in recent months after weakening last year, offering hope that the sector is becoming less of a drag on the broader economy, which is expected to expand this year at its slowest pace in 25 years.
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However, new construction and investment remain weak, and analysts say a full-blown property recovery is unlikely any time soon due to a large oversupply of homes in many cities outside Beijing, Shanghai, Shenzhen and Guangzhou.