China New Home Prices Fall the Least in 11 Months

China’s new home prices across 70 cities dropped 3.2% year-on-year in February 2026, following a 3.1% decline in the previous month. The latest data marked the 32nd consecutive month of contraction and the steepest drop since last June, underscoring Beijing’s ongoing struggle to stabilize the prolonged property downturn, as policymakers have largely relied on measured, incremental support. Among major cities, price declines persisted in Beijing (-2.3% vs -2.4% in January), Guangzhou (-5.1% vs -5.3%), Shenzhen (-5.5% vs -4.9%), Chongqing (-3.8% vs -3.5%), and Tianjin (-4.2% vs -4.0%). In contrast, Shanghai remained the outlier, with home prices continuing to grow at 4.2%, unchanged from January. Monthly, new home prices dipped 0.3%, after a 0.4% fall in the prior three months.

China pledged to stabilize its property sector and optimize housing supply, according to an official government report cited by Reuters. Authorities plan to better utilize existing commodity housing stock, including purchasing unsold homes and converting them into government-subsidized housing to reduce excess inventory. Beijing said it will explore “various avenues” to absorb the glut of unsold properties, while promoting the orderly construction of “quality homes” to upgrade overall housing standards. Efforts will also focus on accelerating the renovation of dilapidated urban housing, aiming to improve living conditions and support domestic demand. In addition, the government vowed to expand the supply of subsidized housing, reinforcing its commitment to stabilizing the real estate market and addressing structural imbalances in supply and demand.

China’s new home prices across 70 cities fell 3.1% year-on-year in January 2026, deepening from a 2.7% decline in the previous month. The latest data marked the 31st straight month of contraction and the sharpest drop since June, underscoring Beijing’s ongoing struggle to stabilize the property downturn. Rather than bold interventions, policymakers have relied so far on measured, incremental steps. Among major cities, price declines widened in Guangzhou (-5.3% vs -4.8% in December), Shenzhen (-4.9% vs -4.4%), Chongqing (-3.5% vs -2.9%), and Tianjin (-4.0% vs -3.0%). In Beijing, prices remained weak and unchanged in pace (-2.4% vs -2.4%). Meanwhile, Shanghai still posted growth, though the increase softened (4.2% vs 4.8%). On a monthly basis, prices shrank 0.4% for the third straight month.