Key facts
- China's new home prices declined 0.1% month-on-month in July.
- Year-on-year, new home prices fell 3.2% in July.
- First-tier cities saw a 1.1% year-on-year price drop, though Shanghai increased 6.1%.
- Second-tier cities experienced a 2.8% year-on-year decrease.
- Third-tier cities recorded a 4.2% year-on-year decline.
- Real estate development investment totaled 5.36 trillion yuan from January to July.
China's new home prices continued to decline in July, reflecting persistent challenges in the housing sector due to subdued demand. Month-on-month, prices fell by 0.1%, mirroring the decrease seen in June. On a year-on-year basis, prices dropped by 3.2%, a slight improvement from the 3.3% decrease in the previous month.
In the four major first-tier cities—Beijing, Shanghai, Guangzhou, and Shenzhen—new home prices decreased by 1.1% compared to the previous year, with the pace of decline narrowing by 0.3 percentage points from June. Shanghai, however, saw a significant year-on-year increase of 6.1% in new home prices. Second-tier cities experienced a 2.8% year-on-year price decline, while third-tier cities saw a 4.2% decrease.
From January to July, total real estate development investment amounted to 5.36 trillion yuan (approximately $751 billion). The Chinese government has been implementing various policies to stabilize the real estate market, including stimulating investment, accelerating urban renewal, increasing affordable housing supply, and providing financial support to qualified developers.