Home Prices Continue to Drop in China

(MENAFN) China’s property market remained under sustained pressure in March, with housing prices continuing their downward trajectory amid weak investment and sluggish sales activity.

Data released Thursday by the National Bureau of Statistics showed that both new and existing home prices declined across most of the country’s 70 major cities during March 2026, underscoring persistent fragility in the sector.

Among China’s four top-tier cities — Beijing, Shanghai, Guangzhou, and Shenzhen — new home prices dropped 2.2% compared to a year earlier. The decline was steeper in smaller urban centers, falling 3.3% in 31 second-tier cities and 4% across 35 third-tier cities.

Shanghai stood out as a rare bright spot, posting a 3.7% year-on-year increase in new home prices, diverging from the broader national trend.

The downturn was more pronounced in the resale market. Prices for existing homes fell 7.4% in first-tier cities, 6.2% in second-tier cities, and 6.4% in third-tier cities on an annual basis.

The latest figures extend a prolonged slump that began in April 2022, when the market entered a post-pandemic contraction. Lingering debt crises among developers and weakened buyer confidence have continued to weigh heavily on the sector.

Real estate investment has steadily declined over recent years, dropping 9.6% in 2023, 10.6% in 2024, and 17.2% in 2025. The downward trend persisted into 2026, with investment falling another 11.2% in the first quarter.

Authorities have rolled out multiple policy measures to stabilize the market, including mortgage rate cuts and reduced down-payment requirements. Local governments have supplemented these efforts with tax incentives, regulatory easing, and buyer subsidies. However, these interventions have yet to produce a meaningful recovery in housing demand or prices.

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