China home prices up 0.3% in August, rise for 4th month

Fake windows are painted on the north side wall of a Economical Housing by developer in Qingdao, Shandong province of China.
Getty Images
Fake windows are painted on the north side wall of a Economical Housing by developer in Qingdao, Shandong province of China.

Average new home prices in China rose for the fourth month in a row in August, increasing 0.3 percent from July, data from the National Bureau of Statistics (NBS) showed on Friday.

Compared with a year earlier, home prices were still down 2.3 percent in August, but eased from a 3.7 percent drop in July, according to Reuters calculations based on the NBS data.

New home prices in Shanghai rose 5.6 percent in August from a year ago while those in Beijing increased 3.0 percent.

Read More Next: A China-led world recession?

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.

Read MoreWill Chinese buyers flee or flood US housing?

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.