China’s new-home prices fell in July in almost all cities that the government tracks as tight mortgage lending deterred buyers even as local governments eased property curbs. Prices fell in 64 of the 70 cities last month from June, the National Bureau of Statistics said, the most since January 2011 when the government changed the way it compiles the data. Beijing prices fell 1% from June, posting the first monthly decline since April 2012.

China’s property market has become a drag on the world’s second-biggest economy, prompting cities to start easing local purchasing restrictions in June. Thirty-six cities had loosened measures as of the end of last week, according to Centaline Property Agency Ltd., while developers have cut prices since March to lure buyers.

The International Monetary Fund has urged China to target slower expansion in 2015, saying the economy faces a ‘web of vulnerabilities’ from rising debt and financial institutions’ exposure to real estate.

However, worse times for China’s real estate sector are still ahead, according to an early-August report by Standard Chartered, which surveyed managers of 30 Chinese developers in six cities. Developers are now offering ‘moderate discounts’ while buyers are still very cautious regardless of how much developers cut prices, Standard Chartered found.