China's property market has shown signs of cooling, posing a dilemma for policymakers who need to shore up the slowing economy. In July, the property sector continued to moderate, with fewer cities reporting monthly rises in new-home prices.

Of 70 large and medium-sized cities surveyed in July, 51 saw new-home prices climb month-on-month, down from 55 in June and 60 in May, the National Bureau of Statistics said on Thursday.

Meanwhile, 16 cities reported month-on-month price declines, up from 10 in June and four in May.