BEIJING - PROPERTY prices in major Chinese cities accelerated in September, the National Bureau of Statistics said Thursday, in a further sign of the strength of recovery in the world's third largest economy.

Prices of real estate in 70 medium and large cities in China rose 2.8 per cent last month from a year earlier and 0.7 per cent from August, the bureau said in a statement on its website. The index increased by two per cent on year in August.

September marked the fourth successive year-on-year increase after the index slumped in the six months from December due to government attempts to rein in runaway prices and as the global economic crisis kicked in.

Beijing has introduced a series of measures since October 2008, including tax breaks, to support the real estate sector, which accounts for more than 20 per cent of urban fixed investments, a key driver of China's economic recovery.

The acceleration in property price growth last month reflected increasing signs that the Asian giant was recovering from the global crisis.

China's economic growth rebounded to 7.9 per cent in the second quarter after slumping to 6.1 per cent in the first three months, the slowest pace in 20 years. Third quarter economic data will be released on or around October 22. -- AFP