China's new-home prices fell at a faster pace in July, according to official data released recently, denting optimism that the prolonged property downturn may be nearing a bottom.

The decline underscores persistent weakness in the real estate sector, which has been a drag on the broader economy. Price drops accelerated across major cities, reflecting subdued demand and cautious buyer sentiment.

Analysts had hoped that recent policy easing measures would stabilize the market, but the latest figures suggest a rebound remains elusive. The property slump continues to weigh on household wealth and local government finances.

Market watchers are now focusing on whether additional stimulus will be deployed to arrest the slide. The trajectory of new-home prices in coming months will be a key indicator of the sector's health.