China home prices dropped for a second month in July, a further sign of the deepening property downturn that’s weighing on the world’s second-largest economy.

New-home prices in 70 cities, excluding state-subsidized housing, fell 0.23% last month from June, when they slipped 0.06%, National Bureau of Statistics figures showed Wednesday. Prices slid 0.47% in the secondary market, according to the data.

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The declines offer no relief to developers like Country Garden Holdings Co., which faces a potential default after missing bond payments this month as the housing market sputters. Risks are also spreading to the financial sector, where a trust company with massive exposure to real estate missed payments on some investment products.

“The slowdown in the property market hasn’t been alleviated in August,” said Chen Wenjing, associate research director at China Index Holdings. “The lackluster market situation may continue in the short term, given it takes some time for local policy support to come out.”

Chinese developers need a turnaround in sales and prices to alleviate a multi-year credit crisis that’s showing no sign of easing. A potential default by Country Garden, formerly the country’s biggest developer by sales, threatens even bigger fallout than defaulted peer China Evergrande Group.

The value of residential sales nationwide tumbled 43% in July from June to 654.5 billion yuan ($90 billion), the weakest monthly sales in almost six years, according to Bloomberg calculations based on separate official data Tuesday.