China reported decline in its home prices for the month of March which raised concerns over the country’s slowing construction activity.

According to the National Bureau of Statistics, 46 cities reported weaker prices as compared to prior month out of 70 surveyed cities. Data remained flat from 16 cities while only 8 of cities reported improvement in the home prices.

According to the report, 38 of the cities were affected due to decrease in property values as compared to 27 cities in the month of February. Many analysts think that this data shows significant change in Chinese economic growth for the current year. Lower home prices results into decrease in residential land prices which eventually ends up in financial burdens on local governments.

Moreover according to statistics, construction activity participates more than 9 percent in China’s economy. Stocks from real estate sector also got badly hit at China’s stock markets in reaction to home prices data.