BEIJING: China's new home prices stalled month-on-month in January, official data showed on Wednesday, suggesting the crisis-hit property sector is struggling to stabilise despite continued government efforts to prop up the market.

Prices were unchanged for the second straight month, according to Reuters calculations based on National Bureau of Statistics data. On a year-on-year basis, new home prices fell 5.0%, narrowing a 5.3% drop the previous month.

Official data from January showed unsold new homes totalled 390.88 million square metres in 2024, marking a 16.2% increase from the previous year. Furthermore, new construction starts, measured by floor area, plummeted 23.0% annually last year.

Key indicators suggest a sustainable recovery in the property market remains uncertain, according to a research note from Moody's Ratings this week.

"We would expect a more sustainable recovery in property sales should there be positive income expectations, stable or rising property price expectations and lower inventory levels that indicate disciplined supply management," said Moody's Ratings.

Policymakers in the second half of last year ramped up efforts to support China's property market, which fell into a slump in 2021.

The crisis in the sector, triggered by a government-led campaign to rein in property developers' leverage, left many unable to repay debt and complete presold housing units. Home sales have tumbled and confidence sagged.

In the central bank's monetary policy implementation report released last week, the property sector joined the list of key areas marked for more credit support.