SHANGHAI: China’s new home prices rose slightly in September, breaking a four-month decline, data showed on Sunday, as developers sped up launches to take advantage of a recent slew of support measures.

Prices rose 0.05% on average from the previous month after falling since May, according to a survey by China Index Academy, a real estate research firm. Only 30 of the 100 cities surveyed reported a fall in new home prices.

The biggest month-on-month increase since October 2021 driven by developers launching new, higher quality housing projects, the firm said in a report.

Confidence in the property sector, which accounts for one-fourth of economic activity, has been hit since 2021 when Beijing cracked down on debt accumulation by developers, fuelling a debt crisis.

Deepening problems in the sector this year have dragged on the world’s second-biggest economy and rattled global financial markets.

China has announced a raft of measures in recent weeks to boost home-buying sentiment, including easing some borrowing rules and relaxing home purchasing curbs in some cities.

These policies have given major cities like Beijing a tiny boost in new home sales, but some worry the improvement might be short-lived and could potentially dry up demand in smaller cities.

China June new home prices flat in weakest showing this year

If such policies continue to be optimised, the report said, the market in first-tier cities are likely to stabilise this quarter while recovery in smaller cities might take longer.

China Evergrande Group, the world’s most indebted property developer, with more than $300 billion in liabilities, said on Thursday its founder was being investigated over suspected crimes.