China home prices extend decline in September despite easing measures

CHINA: China’s property prices fell further in September, with new home prices in 70 cities, excluding state-subsidised housing, slipping 0.41% from August, while resale home prices fell 0.64%. The decline came despite recent efforts by major cities to revive demand.

Notably, the drop in new-home prices was the steepest in 11 months, while resale home values saw their steepest slide in a year.

Bloomberg reported that declining property prices have deterred homebuyers in China, whose property downturn is now in its fourth year. The prolonged slump has weighed heavily on its economy, which grew at its slowest pace in a year during the third quarter.

Kelvin Lam, senior China economist at Pantheon Macroeconomics, said the market “remains in the doldrums” and that price recovery is unlikely until 2027, when housing inventories fall to more “reasonable levels.”

While resale home prices dropped across 70 major cities for the first time in a year, new-home prices in Beijing and Shanghai rose 0.2% and 0.3%, respectively, after both cities allowed eligible residents to buy unlimited properties in their outer suburbs in August, which led to higher sales.

However, China Index Holdings said new home prices in Shenzhen, which also relaxed property curbs in early September, tumbled 1%, more than twice the pace of the previous month, amid price cuts aimed to drive sales.

Yan Yuejin, vice president at Shanghai E-house’s research arm, noted that the steeper decline reflected sellers’ reliance on price cuts to attract buyers.

Official data also showed gross domestic product (GDP) grew 4.8% in the third quarter, down from 5.2% in the prior period. Bloomberg calculations based on official data showed that real estate investment plunged 13.9% in the first three quarters of the year, the biggest fall since 2014.

While exports remain resilient, weak property activity has hurt China’s domestic economy. In the first nine months of 2025 (9M 2025), fixed-asset investment posted a rare contraction, and spending on infrastructure and manufacturing also lost momentum. Still, the statistics bureau said the economy remains on track to meet this year’s growth target. /TISG

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