BEIJING: China’s average daily home sales during the Golden Week holiday were down 17%, based on floor area, compared with last year, despite a series of piecemeal support measures to restore confidence in an ailing property market, according to a survey.

China Index Academy said on Saturday that average daily home sales in smaller cities, known as tier three and four cities, fell 50% during the holiday from Sept. 29 to Oct. 6, compared with last year, when the holiday fell between Oct 1-7.

However, the research firm said new home sales rose 62% in tier-one cities, suggesting that the support measures, including lower mortgage rates and down payments, could be unlocking pockets of demand in the most sought-after areas.

Tier-one cities, including Shanghai, said several weeks ago they would allow people who have fully repaid their previous mortgage or sold their other homes to make down payments of as little as 35-40%, compared with 60-70% previously.

The number of visits to property showrooms increased slightly during the holiday, but confidence has not recovered significantly, the research firm said.

The Golden Week holiday is traditionally a peak period for new-home sales in China, with developers offering promotions and releasing new properties on to the market.

New home sales declined around 20% year-on-year last month, the survey also showed. Official data for September will be released on Oct. 18.

China new home prices tick up in Sept, ending four-month decline

More support measures could be taken, Citi analysts said in a research note, including through old-village redevelopment and resumption of the central bank’s pledged supplementary lending (PSL) policy.

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