Chinese housing prices rose at their fastest monthly pace in 18 months, a private survey showed on Thursday, the latest sign that the country's property market, a key growth driver, is recovering from a year-long slump.

The slumping property market is a major reason growth in China’s economy slowed to a six-year low in the fourth quarter. Economists estimate that building, sale and outfitting of apartments accounts for about a quarter of the country’s gross domestic product.

Average home prices rose 0.56 per cent in June from a month earlier, data from the China Index Academy’s survey of 100 cities show, up from a 0.45 per cent gain in May and the fastest growth since January 2014. In spite of the new figures, however, analysts expect the market to recover only gradually.