Prices in annual terms showed the smallest drop since June 2022, down 0.8% in March after a 1.2% decline in February, the 11th month of declines on an annual basis.
“The housing price index shows a trend of stabilization and recovery, fully indicating the overall real estate is out of last year’s trough,” said Yan Yuejin, an analyst at the Shanghai-based E-house China Research and Development Institution.
Strong home sales in March drove up an improvement in house prices, said Yan.
The property sector, accounting for roughly a quarter of China’s economy, was hit hard last year as a regulatory crackdown on developers’ high debt levels snowballed into a financing crunch, stalling construction on housing projects. Some buyers boycotted mortgage repayments, further weakening consumer sentiment amid tough COVID restrictions.
Major cities have seen a rebound in home sales over the past month, as pent-up demand was unleashed after China abruptly rolled…
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