The rising cost of new residential housing in Sanya city in Hainan province, as well as Jinan city in Shandong province, led the country in July, The Beijing News reported.
Home prices in Sanya and Jinan rose 3.7% and 3% respectively from a year earlier.
The rise in housing prices is concentrated in second- and third-tier hotspot cities, including Kunming, Yantai, Yichang, Yangzhou and Changsha.
Of first-tier cities, the sales price of new commercial residential buildings rose by 0.2% year-on-year in July, while that of second-hand housings increased by 0.5%.
Zhang Dawei, chief analyst of the Centaline Property Agency, said home prices in China are still experiencing an upward trend, while some cities have relatively higher growth rates.
Thus, it is very likely further regulations are expected to be introduced to rein in the market.