New home prices in China increased for the second consecutive month in October: Survey

However, analysts argue that additional supportive measures will be required in major cities to sustain this recovery.

On average, prices rose by 0.07 percent month-on-month, extending the 0.05 percent increase observed in September. Additionally, the firm noted that new-home sales, measured by floor area, saw a decrease of approximately 10 percent in October, which is a narrowing of the 20 percent decline from the previous month.

In a report from Reuters, while the property market's recovery remains fragile, China Index Academy mentioned that support policies are increasing, and further steps are anticipated. These measures may include relaxing home purchase restrictions and reducing down payment requirements, mortgage rates, and transaction taxes in major cities.

China's property sector, once a vital component of the world's second-largest economy, has faced a liquidity crisis since 2021, causing concerns in global markets. In response, various measures have been introduced in recent months to provide reassurance to investors and homeowners.

As part of this effort, China pledged to address the reasonable financing needs of all developers, regardless of ownership, with "equal treatment," as confirmed during the Central Financial Work Conference, a biennial policy meeting that concluded on Tuesday.

"The latest remarks from the National Financial Work Conference offer no surprise with no new concrete measure to mitigate sector risk. We stay cautious on the sector,"  economists from JP Morgan said in a research note.

China Evergrande, burdened with over $300 billion in liabilities, is working to prevent liquidation through revisions to its debt restructuring plan. Evergrande defaulted on its offshore debt in late 2021, becoming a prominent example of the debt crisis affecting China's property sector.