“In the second half, the recovery trend in the property market is likely to be sustained, which will create better situation for consumer prices and support factory-gate prices,” the National Development and Reform Commission/tag)  said in a statement.

In a recent report by Knight Frank, looking at rental growth for prime properties around the world, Beijing was identified as the weakest city, logging a 7 per cent fall in the first quarter of the year. 

Signs of a pick-up, however, manifested in May when the rate of decline in China's home prices slowed to 5.7 per cent, compared to 6.1 per cent in April.

The brighter outlook follows July's equity slide in China's mainland market and recent data showing a fall in Chinese producer prices and exports, which have led to hopes of further policy stimulus.