BEIJING, (Reuters) – China’s January home price drops were less than the month before, according to data from a private sector reseatch company on Tuesday. This indicates a slightly better sentiment in China’s property market.

According to China Index Academy data, the largest independent research firm in real estate, new home prices fell by 0.01% between a month ago and January. This was after a drop of 0.02% in December.

Sector is experiencing headwinds due to regulatory borrowing restrictions imposed in 2020. Some developers have defaulted on their offshore debt obligations. There has also been a selloff of developers’ stocks and bonds, as well as a reduction in credit ratings.

Beijing has taken steps in recent months to stabilize the sector, including lowering mortgage rates and offering subsidy to encourage banks to lend to developers.

China has started to create rules for property developers that make it easy for them to get the funds they need from prepayments. Additionally, plans are in place to allow credit to be used to finance distressed acquisitions without regard to regulatory debt limits.