Housing prices in China continue downward trend, downturn enters its fourth year
Data from the National Bureau of Statistics of China showed that the annual decline in housing prices in the country continues across a broad geography, with the crisis reaching its fourth year.
According to data released by the National Bureau of Statistics of China, new and secondhand housing prices continued to decline in the majority of large and medium-sized cities in August 2026. New home prices in the country have continued to fall since April 2022.
New Housing Prices by Tiers
New housing prices decreased by 0.9 percent year-on-year in tier-one cities, which include Beijing, Shanghai, Guangzhou, and Shenzhen.
While the decline in new housing prices in 31 large tier-two cities was recorded at 2.7 percent, this rate reached 4.1 percent in 35 medium-sized tier-three cities.
Notable Exception in the Shanghai Market
Shanghai, the city with the largest population in China, presented a different picture contrary to the general downward trend.
New housing prices in Shanghai increased by 3 percent on an annual basis, forming a significant exception among tier-one cities.
Decline in the Secondhand Housing Market
Prices in the secondhand housing category also continued to follow a downward trajectory across the country.
Secondhand housing prices dropped by 2.7 percent in tier-one cities, 4.9 percent in tier-two cities, and 5.6 percent in tier-three cities.
General Contraction in the Real Estate Sector
The decline in real estate investments and the contraction in the property market that emerged after the COVID-19 pandemic increased the pressure on housing prices.
In the first 8 months of the year, real estate investments fell by 19.9 percent, while new housing sales decreased by 12.1 percent in terms of square meters.