China's new home prices were unchanged in April from a month earlier, official data showed on Monday, extending the no-growth trend to nearly two years despite policymakers' efforts to stabilise the sector.
New home prices stayed the same for a second straight month and have shown no growth since May 2023 as China attempts to lift the real estate sector, once a key driver of the economy, from a prolonged slump.
"The property sector remains on a downward path. While many believe we're approaching the bottom, the exact distance remains uncertain," said Zhaopeng Xing, senior China strategist at ANZ.
From a year earlier, prices in April were down 4.0%, a slight improvement from a 4.5% decline last month, according to Reuters calculations based on data from China's National Bureau of Statistics.
Beijing has announced a raft of stimulus measures in recent weeks to bolster the economy amid trade uncertainties with the U.S., including trimming mortgage costs for some buyers to turn around a property crisis that began in 2021.
Indebted developers have since struggled to repay their borrowings and deliver pre-sold homes, dampening confidence in the sector.
The April slowdown reflects diminishing policy stimulus effects, the impact of ongoing U.S.-China trade tensions, and seasonal demand contraction following March's traditional peak, said Zhang Dawei, chief analyst at property agency Centaline.
"Policy interventions haven't fundamentally altered homebuyers' long-term market perspective," said Zhang. "Persistent economic uncertainty and income instability continue making potential buyers increasingly cautious."
Resale home prices declined across tier-one, tier-two, and tier-three cities on both a monthly and annual basis.
Separate official data showed property investment dropped 10.3% year-on-year and sales by floor area shrank 2.8% in January-April.
The head of China's financial regulator promised to roll out more measures to help sustain the "stabilising trend of the property sector" at a high-profile press conference earlier this month.
Meanwhile, the central bank cut the interest rate for housing provident fund loans by 25 basis points, effective May 8, reducing borrowing costs for some buyers.
"The policy response clearly demonstrates the government's resolve to support real estate. Market participants now await stronger measures to restore confidence and avert further decline," said Centaline's Zhang.
