China announced a slate of fresh measures Friday to reinvigorate its ailing property industry after the latest data showed housing prices have slumped nearly 10% since the start of the year.

Among other things, the central bank said it would reduce the minimum down payment for mortgages and remove the floor on interest rates for first and second homes.

China’s housing market has slumped after a crackdown on excessive borrowing by property developers several years ago, dragging along a wide range of other businesses — such as home furnishing, appliances and construction — and slowing growth in the world’s No. 2 economy.

Dozens of developers, whose legions of high-rise apartments have transformed urban landscapes across China, have defaulted on their debts. Many projects have just stalled, unfinished.

He Lifeng, a vice premier, said officials would roll out policies to suit each city and “fight the tough battle of dealing with the risk of unfinished commercial housing.”

“We will solidly advance key tasks such as guaranteed housing delivery and absorption of existing commercial housing,” the official Xinhua News Agency cited He as telling a top level teleconference on property policies.

The effort to entice more families to buy homes has gained momentum after earlier moves such as interest rate cuts and government-backed financing failed to lure buyers into the market at a time when developers are struggling to deliver housing already promised and paid for.

Housing is a mainstay of investment for Chinese, given the low level of interest rates paid by banks, and many potential buyers might be waiting for the market to bottom out before considering new purchases. Also, layoffs and other disruptions from the pandemic have left many people wary of spending.

The announcement by the People's Bank of China said that effective Saturday, the interest rate for first-time housing provident fund loans for under 5 years will be cut by 0.25 percentage point to 2.35%. The rate for loans over 5 years was reduced by 0.25 percentage point to 2.85%.

Minimum down payments for loans for first homes will be 15% of the purchasing price. For second homes, it will be 25%, it said.

The latest efforts, which take the down payment levels and mortgage interest rates to historic lows, show Chinese leaders are determined to stabilize the real estate market, Chen Wenjing of China Index Holdings, a Nasdaq-listed company specializing in information about China's real estate market, said in a report.

“Reducing the down payment threshold and home purchase costs for residents will likely boost their willingness to buy homes,” Chen said. If major cities follow up with related measures, that will likely improve market sentiment even more, he said.