Property prices in 70 Chinese cities rose slightly in June, compared to May, after eight months of decline.
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Home prices rose 0.3% in Beijing and 0.2% in Shanghai compared to the previous month, official data showed.
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China had implemented two years of curbs on the real estate market to bring prices down.
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However, as the economy slowed to a three-year low in the second quarter, measures have been taken to boost growth.
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Spurring growth
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The Chinese central bank has cut key interest rates twice in recent months. Analysts said this and other steps have broken the trend of falling home prices.
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"With rate cuts and a return of market confidence, we think transactions will continue to recover," said Lan Shen, from Standard Chartered in Shanghai.
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Official data showed that new home prices fell in only 21 cities in June, down from 40 in May.
Across the country, home prices were down 1.5% in June compared to the previous year, according to Reuters calculation based on the data.
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China no longer publishes national property prices, instead providing a survey of select cities.
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Future rise?
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Massive spending on infrastructure and construction projects in China after the global financial crisis had pushed up property prices.
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Analysts have said that speculation in the market could have triggered a property price bubble, which promoted authorities to take preventive measures to rein in prices.
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Premier Wen Jiabao has said that prices must come down in major cities.
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Yet, some analysts said the shift by policymakers towards pro-growth policies since May this year means property prices could be set to rise once more.
"If economic data stays weak, [authorities] will close one eye and let housing prices increase," Jinsong Du, a Hong Kong-based analyst with Credit Suisse told the BBC.
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"Because that is the only way to stimulate the economy in the near term."
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He added that prices could rise up to 10%.Â
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"But after that, if the economy stabilises the Chinese government may crack down on the housing market again."Â