“The property market remains the biggest drag on China’s growth,” said Lynn Song, chief economist for greater China at banking giant ING.
“New investment is unlikely to see a substantive recovery until prices stabilize and housing inventories decline… until then property will remain a notable headwind to growth.”
Earlier on Friday, China’s central bank said it had held a meeting to call on banks and other financial institutions to boost lending to help support growth.
Last month, the People’s Bank of China (PBOC) announced the country’s biggest stimulus package since the pandemic, including large cuts to interest and mortgage rates.
The plans also included help for the flagging stock market and measures to encourage banks to lend more to businesses and individuals.
Since then, the Ministry of Finance and other government bodies have unveiled further plans aimed at boosting economic growth.
The world’s second largest economy has been hit by a number of challenges, including a property crisis, as well as weak consumer and business confidence.