Investing.com -- Chinese house prices edged lower in April, data showed on Wednesday, as the country’s property sector remained under pressure from sluggish investment and as a broader economic rebound stalled.
Chinese house prices fell 0.2% in April from the prior year, data from the National Bureau of Statistics (NBS) showed. While the decline was at its slowest pace in a year, it still marked the 11th consecutive month that house prices have retreated.
The data comes just a day after the NBS warned that public and private investment in the real estate sector remained sluggish. Investment in the space fell 6.2% in the year to April, deeper than a 5.8% drop seen in March.
The Chinese property sector, which accounts for a quarter of the country’s GDP, has been under pressure for the past three years as disruptions caused by the COVID-19 pandemic and stricter laws on fundraising triggered a widespread cash crunch.
This also saw the unwinding of a major house price bubble in the country, which in turn burned retail investors and sparked increased scrutiny towards the space.
While the government has rolled out a slew of stimulus measures to encourage investment in the space, private investors have remained wary of the property market so far this year.
The withdrawal of anti-COVID measures at the beginning of the year also did little to spur investment into the property market.
A post-COVID rebound in China’s economy now appears to be running out of steam, as suggested by a barrage of weaker-than-expected economic readings for April. This has caused some unwinding in bets for a strong economic recovery in the country this year.
Still, the government is now expected to further increase liquidity conditions in the country to spur economic growth.
The Chinese yuan fell 0.2% after Wednesday's reading, and was within spitting distance of the key 7 level.