China New Home Prices Decline Slower in June 2026

New home prices in China continued to decline in June 2026, though the pace of the contraction slowed. Data from the National Bureau of Statistics shows a month-on-month drop of 0.1% to 0.15%, an improvement over the 0.2% decline recorded in May. On a year-over-year basis, prices fell between 3.3% and 3.5%.

Market performance varied by urban scale. Top-tier cities experienced modest improvements and some price increases for both new and existing homes, while tier-two and tier-three cities remained stagnant, struggling with weak demand and excess supply.

This property slump, now in its fifth year, has constrained household consumption and contributed to a second-quarter economic growth slowdown to 4.3%, missing analyst expectations. The Government of China has attempted to revive activity by lowering mortgage rates and reducing down payment requirements. However, the central government has refrained from implementing major nationwide stimulus policies.

Institutional pressure for stability continues, as the Politburo Standing Committee of the Chinese Communist Party called for stabilizing the real estate market to prevent a negative spiral of falling asset prices from further damaging consumer confidence.