The figures from the National Bureau of Statistics in China showed that residential property prices in 70 big and mid-size cities in China rose +2% last month from a year earlier, and +0.9% from July.

Year-on-year growth in real estate investment also gained pace, increasing +14.7% from January to August. Shenzhen and Jinhua, the main cities in the eastern coastal provinces, led the gains.

Most analysts believe the recovery is due to the series of measures introduced by the Chinese Government since last October, including tax breaks, to support the real estate sector, which accounts for more than 20% of urban fixed investments and is a key driver of China’s economic recovery. However, analysts have warned that property prices could face a major correction if the Government has to make aggressive moves to prevent asset bubble build-ups.