In June, China’s new home prices fell 4.5% YoY, the fastest decline in nine years, following a 3.9% drop in May. This decline, coupled with slumping property sales and investment, pressures policymakers to provide more stimulus for the struggling sector. Despite support measures like reduced home buying costs and converting unsold apartments to affordable housing, confidence in the property market remains low due to numerous developer defaults and idle construction sites since 2021. The property sector’s downturn has significantly impacted the economy, which grew only 4.7% in Q2, missing forecasts. Experts warn that further stimulus may not substantially reverse falling prices due to fundamental changes in supply and demand.