April new home prices 0.4 mm vs 0.5 mm in March
April prices 0.2 yy vs 0.8 yy in March
More policy stimulus may be needed, analysts say

BEIJING, May 17 Reuters China39;s new home prices rose for the fourth straight month in April but at a slower pace, heightening fears that pentup demand after the country39;s economic reopening is fading.

Economists say more policy stimulus may be needed to ensure the recovery stays on track after a batch of recent data showed imports contracted sharply, factory gate prices fell again and industrial output and retail sales missed forecasts.

New home prices in April rose 0.4 monthonmonth versus a 0.5 gain in March, according to Reuters calculations based on National Bureau of Statistics NBS data on Wednesday.

The slower pace of home price gains, along with bearish data on Tuesday showing property investment and sales sharply falling, are raising doubts about the strength of the recovery in a sector crucial to the health of China39;s economy.

Beijing39;s aggressive stimulus policies to the crisishit property sector since November have boosted sentiment over the past few months but homebuyers are increasingly worried about job security.

Zhang Dawei, analyst at property company Centaline, said the fundamentals of the market have not changed and homebuyers are starting to hold back following the release of pentup demand in the first quarter that pushed prices up.

From a year earlier, prices fell 0.2, the 12th month of decline in…