Upside-Down House Tourist Attraction China
Tourists visit at an upside-down house at Fengjing Ancient Town, Jinshan District, south of Shanghai, in May. Reuters

China's home prices fell further in August over the previous month, two private surveys showed.

Prices of new homes in 288 cities were down 0.3% in August from July, the fifth straight drop on a monthly basis, a survey by real estate services firm E-House China Holdings showed.

However, prices in August were still up 3% when compared to a year ago.

A separate survey by China Real Estate Index System (CREIS) showed average prices in 100 of the biggest cities dropped 0.6% in August from July, the fourth successive monthly drop.

However, prices were still up 3% in August when compared to a year ago, CREIS said.

China's property price growth will slow further, despite an expected improvement in sales in the remainder of 2014, a Moody's report said.

Price rises will probably be constrained as property developers are more willing to keep prices low to attract buyers, amid a rich supply of new projects in the coming months, the report added.

Government data showed China's home prices dropped 0.9% in July from June but were still up 2.5% when compared to a year ago.

Home prices in the world's second largest economy have been falling for several months, particularly after the government stepped in to control price rise in what was, a year ago, a red-hot property market.