Prices of new homes in China rose at the fastest pace in 21 months in March, in the latest sign of green shoots for the world’s second-biggest economy as it recovers from three years of pandemic restrictions and Beijing eases up a crackdown on the debt-laden property sector.

New home prices rose 0.5 per cent on the previous month, according to official data, following a 0.3 per cent increase in February.

The positive data signalled some relief for China’s ailing property sector, which has suffered a liquidity crisis over the past two years that has plunged a series of developers into default. The new home sales figure followed better than expected export figures released last week, as China’s trade was buoyed in March by shipments of electric vehicles and their components as well as an increase in trade with Russia.