China's property market is shrinking at a faster pace, dragging further on the economy

• Sales of Chinese property fell 28.1% in June from a year ago, deeper than May's 19.7% decline.
• Property investment fell 7.9% in the year's first half, also marking a faster drop.

The Chinese property sector is contracting at a faster pace, representing a bigger drag on the world's second-largest economy.

Property sales by floor area fell 28.1% in June from a year ago, marking the largest drop of the year and deepening from May's 19.7% decline, according to official data compiled by Reuters.

Meanwhile, real-estate investments declined 7.9% in the January-June period, worse than the 7.2% dip in the January-May stretch, Bloomberg said citing official data.

The numbers are the latest signs of the downturn that has seen Chinese developers continue to face a heavy debt burden, sluggish demand for new property, and potential homebuyers focusing on saving amid a slumping economy.

Home prices also dropped for the first time this year in June, and Reuters reports that many developers are having a hard time finishing pre-sold housing constructions, something that has previously resulted in a mortgage boycott among homebuyers.

New construction starts by floor area dropped 24.3% year on year, and developer fundraising fell 9.8%.

As the property sector accounts for around one-fifth of China's GDP, its declining health has also dragged down second-quarter growth for the country, which rose 6.3% from a year ago. This is well below the 7.1% forecast among economists.

Cooling GDP was also on account of a pullback in private investment, with industrial output weak as well.

In prior months, Beijing has introduced some measures to help support the ailing market, such as loan extensions and an end to restrictions on property purchases. It has also provided stimulus towards infrastructure measures.

According to Bloomberg, China's leadership is set to meet this month to discuss economic policy.