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Chinese house prices on the up and up

China's property market is on the mend as July figures provide relief to the otherwise slumping economy.

Average prices for new homes across China rising 0.3 percent compared to the previous month.

The third-straight month of improving prices giving a glimmer of a long-term trend.

China's first-tier cities like Beijing and Shanghai supporting the average, but Shenzhen's a real standout with a fourth-consecutive month on the rebound.

But smaller cities are still crawling out from under large numbers of unsold houses.

Andrew Freris of Ecognosis.

CEO, ECOGNOSIS ADVISORY, ANDREW FRERIS, SAYING:

"The news are partially okay - except of course investment in housing and property rightfully and thankfully has absolutely collapsed. So in other words, you still have a very large amount of inventory to work through. And the fact that the government has loosened up monetary policy, has cut interest rates three times. About six months ago the rules on double mortgages and second mortgages were loosened up quite considerably, means that they're trying to enforce some kind of a bottom."

The country's largest property developer, China Vanke believes the housing market is improving, but will take time to see a complete recovery.

Property is crucial to China's growth - any uptick in that market is a welcome boost as the country faces its slowest growth in 25 years.

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