Key Takeaways:
China’s property market continued to show signs of a deep downturn in March, with second-hand home prices in 100 cities dropping 8.55% year-on-year, even as a wave of high-end project launches caused a statistical rise in new home prices. The divergence highlights a persistent slump in the mass market despite nascent stabilization in top-tier cities.
The data, released by the China Index Academy, shows a complex picture for the nation's real estate sector, a key pillar of the economy. "In March 2026, the 'early spring' market trend appeared in core cities, combined with stabilized owner expectations," the academy said in its report, pointing to a potential bottoming process in some segments.
By the numbers, the average price of second-hand homes in 100 cities fell 0.34% from the previous month to RMB 12,792 per square meter. While this marked the third consecutive month the decline has narrowed, the 8.55% year-on-year fall underscores the severe pressure on homeowners. In contrast, the average price of newly built homes ticked up 0.05% month-on-month to RMB 17,115 per square meter, which the report attributed to a structural shift from new luxury projects entering the market in cities like Shanghai and Hangzhou.
The slight stabilization in Shanghai’s secondary market, where prices rose month-on-month for the first time in 33 months, offers a glimmer of hope for policymakers. However, the broader market weakness continues to weigh on consumer confidence and the financial system. The post-holiday rental market also saw a brief 0.09% month-on-month price increase, though rents remain down 3.65% from a year ago, signaling weak underlying demand. The sustained downturn suggests that further policy support may be required to prevent a deeper economic slowdown.
This article is for informational purposes only and does not constitute investment advice.
