New home prices across 70 major cities in China declined at a softer pace in June, fanning expectations for a recovery in the country's troubled real estate market.

The figure slipped 3.3% year over year in June, the 36th straight month of declines, according to Trading Economics' calculation of data from the National Bureau of Statistics (NBS) on Wednesday.

The latest print was softer than the 3.5% decrease recorded in the previous month. June's figure was also slower than the Trading Economics forecast of a 3.4% drop.

Second-hand home prices declined the most in four months at 0.32%, Bloomberg reported separately.

The figures indicate existing government measures are helping tame the property market amid weakened demand and confidence.

Home prices in Shanghai rose 3.1%, slightly slower than the 3.2% increase seen in May, Trading Economics said.

After Shanghai's increase, more cities could see a stop in the decline of residential values, Bloomberg reported separately on Wednesday, citing analysts at CITIC Securities (HKG:6030, SHA:600030).

The figures come as real estate investment slid 18% year over year in the first six months, sharper than the 16.2% decline recorded in the previous five-month period.