China's new home prices rise on hope

New home prices remain under pressure despite efforts by Chinese policymakers over the past year to stabilize the sector with supportive measures, including most recently lowering lending rates to encourage property purchases.

The real estate research institute said in a report published on its WeChat account, "In general, current macro policy support for the real estate market has increased."

A survey conducted a month ago showed that new housing prices in first and second-tier cities increased, with Shanghai ranking first among 100 cities.

On an annual basis, the average price of new homes increased faster, at 2.56 percent compared to 2.50 percent in April.

The China Bureau of Statistics will release official data on housing prices on June 16.

The company noted that listings for second-hand housing units have consistently been high in volume, keeping prices in this segment low.

Second-hand home prices fell 0.71% from a month ago and 7.24% from a year earlier. These figures compare with declines of 0.69% and 7.23% respectively in April.

China's real estate market, which accounts for about a quarter of economic activity at its peak, is where about 70 percent of the country's household wealth is invested.

Any signs of relief could help China's economy recover from the stress of its unresolved trade war with the United States.