BEIJING, (Reuters) – China’s April property sales fell by the fastest rate in 12 years. This was due to COVID-19 lockdowns which further cooled down demand despite additional policy easing measures aimed at reviving a crucial sector of its second-largest country.

According to Reuters calculations based upon data from Monday’s National Bureau of Statistics (NBS), April saw property sales fall 46.6% from a previous year. This is the highest rate since 2010 and a sharp increase from March’s 26.17% drop.

Property sales fell by 29.5% in January and April, as compared to the 22.7% decrease experienced over the previous three months.

China’s key economic driver has seen its property sector suffer a serious slump in the last year. Authorities have cracked down hard on lenders, scaring many home-buyers who fear that their projects will not be complete.

Since the start of the year more than 80 cities took steps to increase demand, including subsidy, lower mortgage rates, and smaller down payment.

The property outlook remains dim amid the protracted COVID-19 curbs that have been in place in many cities including Shanghai. This lockdown is currently in its seventh week.

Chinese financial authorities allowed another reduction of mortgage interest rates to encourage demand on Sunday.

Nomura wrote in a Monday note, “Although this cut is expected to provide a benefit,”

After a 0.7% increase in the first three month of 2011, national property investments by developers dropped 2.7% from one year ago in January-April.

The pace of property investments fell by 10.1% in April compared to the 2.4% decrease recorded in March.

Floor area was the most important metric for measuring new construction. It fell 44.19% over a year ago, which is the slowest pace since January-February 2020.

After a decline of 17.5% in the first three quarters, new construction started fell by 26.3% between January and April compared to a year ago.

Komatsu, Japan’s construction equipment manufacturer (OTC) announced a 16.6% drop in China use in April. This follows a March decline of 17.3%.