China New Home Prices Fall the Most in 10 Months

China’s new home prices across 70 cities fell 3.4% year-on-year in March 2026, widening from a 3.2% decline in the previous month. The latest reading marked a 33rd straight month of contraction and the steepest drop since May 2025, underscoring persistent weakness in the property sector. The data highlighted Beijing’s ongoing struggle to stabilize the housing market, as policymakers continue to rely on gradual, targeted support measures that have yet to reverse the downturn. Among major cities, price declines persisted in Beijing (-2.1% vs -2.3% in February), Guangzhou (-4.7% vs -5.1%), Shenzhen (-5.5% vs -5.5%), Chongqing (-4.4% vs -3.8%), and Tianjin (-4.8% vs -4.2%). Meanwhile, prices in Shanghai rose at a slower rate (3.7% vs 4.2%). Monthly, new home prices fell 0.2%, after a 0.3% decrease in February.

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.