BEIJING, China: Homeowners in China are slashing prices to attract buyers as a growing number of resale properties flood the market. Average resale home prices across 100 cities fell 0.7 percent month-on-month in April, according to a report from a Chinese real estate research institute.

“Price cuts to drive sales remained the market norm,” the China Index Academy wrote in the report published on its official WeChat account this week.

The institute noted a surge in listings in core cities last month following the easing of resale restrictions in some areas.

With 70 percent of household wealth in China tied to real estate, signs of stabilization—or even a mild recovery—could offer critical support to an economy under pressure from a potential renewed trade war with the United States.

Some analysts estimate that average home prices have dropped by 20 to 30 percent since peaking in August 2021 as the sector continues to grapple with a prolonged downturn.

The data shows resale prices began declining more sharply in February after seven months of slower drops. In April, existing home prices fell 7.2 percent year-on-year, while prices of new builds in the same cities rose 2.5 percent.