Overview
- Official National Bureau of Statistics data show new-home prices fell 3.3% year-on-year in June and 0.1% month-on-month, a slight easing from May but still part of a multi-year downtrend.
- Resale markets fared worse, with the China Index Academy reporting broad declines across 100 major cities in June and very few cities posting gains in 2026.
- Home sales, developer investment and new construction starts have dropped sharply in the first five months of 2026, reducing activity across steel, cement and other building supply chains.
- Land-sale revenue for local governments has collapsed from earlier peaks, forcing changes in local financing and leaving municipal budgets more exposed to the housing slump.
- Beijing’s measures—mortgage rate cuts, looser purchase rules, inventory purchases and consumer subsidies—have slowed the pace of decline but have not produced durable stabilization or restored household confidence.