China housing market regains momentum

"The growth in July is also higher than the same period in 2012 and 2013. Not to mention the high temperature of up to 38 degrees Celsius in Shanghai and many other places have held potential buyers back from going out and visiting sales offices." Yang said.

Rating agency Fitch Ratings told Xinhua in an email on Thursday that China's housing market "further improves" as "sales pick up."

Fitch Ratings said in its latest China Property Watch that "the recovery in China's housing market continued in June 2015 as monthly contracted sales growth accelerated and new home prices rose further in first and second tier cities."

"Homebuilders have been conserving liquidity, though, and their land purchasing activities remained weak. They instead chose to replenish their land banks by acquiring controlling stakes in peers or existing projects. Most Fitch-rated homebuilders reported strong contracted sales growth in June," according to the Fitch Ratings.

Investment in China's property sector rose 4.6 percent year on year during January-June period this year, slower than the 5.1-percent increase seen in the first five months, earlier NBS data showed.

Li Chunyan, an analyst from CricChina.com, forecast that home prices will continue rising in the upcoming months, but at a slower pace due to oversupply.