China’s home prices fall at fastest pace in a year

By Emre Aytekin and Mucahithan Avcioglu

BEIJING / ISTANBUL (AA) - China’s housing prices continued to slide in October, marking the sharpest annual decline in 12 months amid financing strains and weakening real estate investment.

According to the National Bureau of Statistics’ housing price index released Friday, both new and existing home prices fell in most of the country’s 70 large and medium-sized cities.

New home prices dropped 0.8% year-on-year in the four top-tier cities -- Beijing, Shanghai, Guangzhou and Xinjiang -- 2% in 31 second-tier cities, and 3.4% in 35 third-tier cities.

Shanghai, China’s most populous city, was the lone exception among top-tier cities, with new home prices rising 5.7% annually.

Secondhand home prices also decreased across the board, falling 4.4% in top-tier cities, 5.2% in second-tier cities and 5.7% in third-tier cities.

- New home prices have been falling since April 2022

China’s new home prices have been declining for more than three years. The post-pandemic contraction in the property sector and persistent debt problems among major developers continue to weigh heavily on the market.

Real estate investment fell 9.6% in 2023 and 10.6% in 2024. In the first 10 months of 2025, investment plunged 14.7% from a year earlier, while new home sales by floor area dropped 6.8%.

In recent months, Beijing has cut mortgage rates and minimum down payments to support the housing market. Local governments have also rolled out incentives -- including tax breaks, looser regulations and subsidies -- to boost sales.

- New house prices in decline since April 2022

China’s new home prices have been declining for more than three years. The post-pandemic contraction in the property sector and persistent debt problems among major developers continue to weigh heavily on the market.

Real estate investment fell 9.6% in 2023 and 10.6% in 2024. In the first 10 months of 2025, investment plunged 14.7% from a year earlier, while new home sales by floor area dropped 6.8%.

In recent months, Beijing has cut mortgage rates and minimum down payments to support the housing market. Local governments have also rolled out incentives -- including tax breaks, looser regulations and subsidies -- to boost sales.

So far, however, these efforts have failed to reverse the broader downward trend.