Home prices in China increased only 4.1 percent in August, hinting that fiscal policies laid down by the government in July may be slowly taking effect.

China's National Bureau of Statistics said new home prices rose in all 70 cities, with Nanchang City posting the highest increase at 9.1 percent from a year ago, followed by Urumqi with 8.8 percent. Prices in Beijing hiked 1.9 percent from a year ago, while Shanghai showed a 2.8 percent uptick.

In July, the government implemented new regulations, including limiting the number of homes a family can buy, raising property taxes and imposing stricter downpayment requirements and mortgage taxes, to dampen the market.

Chinese banks have likewise limited granting loans to potential home buyers.

The development resulted in home prices falling in August from July. But the full gains effect has yet to be realized as experts said no significant decrease was posted year-on-year. Home prices in July reached 4.3 percent.

Month-to-month, home prices in 31 cities, including Beijing and Shanghai, showed a flatline movement to August from July, the statistics bureau said.

From July to August, prices of existing homes fell in 26 cities, by as much as 1.3 percent in Nanchang, compared to July's record of 12 cities and June, 19 cities.