Prices of new homes in 100 Chinese cities rose a touch in April in an extension of modest gains seen in March, a private survey showed on Monday (May 1), as government support measures stoked demand in large and midsize cities.

New home prices in April edged up 0.02 per cent from the previous month, the same as in March, according to data from the China Index Academy, one of the country’s largest independent real estate researchers.

In April, 30 cities reported increases, down from 41 in March, the firm said.

China will support housing demand, ensure home delivery and promote sound and stable development of the property market, the Politburo, a top decision-making body of the ruling Communist Party, said on Friday.

The property sector, which accounts for a quarter of China’s economy, was badly hit last year as many developers could not finish projects, leading to mortgage boycotts by some buyers. Covid-19 lockdowns and movement controls also hurt buyer sentiment.

Sales have rebounded in major cities in recent weeks, as homebuyers return after Beijing abandoned its zero-Covid policy in December, but consumer confidence remains fickle. REUTERS

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