China’s home prices extend decline in March as property slump persists
China's new home prices continued their downward trend in March, falling for the tenth consecutive month as the property sector struggles to find a firm bottom despite localized improvements in top-tier cities.
According to data released by the National Bureau of Statistics on Thursday, new home prices in 70 cities dropped 0.3% month-on-month, maintaining the same pace of decline seen in February, News.Az reports, citing Reuters.
On an annual basis, prices fell 2.2%, the sharpest year-on-year contraction since mid-2023, underscoring the persistent lack of confidence among buyers despite a string of government support measures.
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The data revealed a widening divergence between China's major economic hubs and its smaller regional centers. While new home prices in first-tier cities like Beijing and Shanghai showed signs of stabilizing with a modest 0.1% increase, prices in third-tier cities fell by 0.5%, reflecting deeper structural weaknesses in secondary markets.
This uneven recovery suggests that while recent policy easing—including lower down-payment requirements and the removal of purchase overhauls in some districts—is gaining traction in wealthy urban centers, it has yet to stimulate broader demand across the country.
The prolonged property slump remains a primary headwind for the Chinese economy, impacting everything from local government revenues to household wealth and consumer spending. Analysts note that while the pace of monthly declines has not accelerated, the lack of a meaningful rebound indicates that potential homeowners remain cautious due to concerns over unfinished projects and the broader economic outlook.
With the sector traditionally accounting for a quarter of China’s GDP, the continued price erosion highlights the challenges Beijing faces in engineering a sustainable recovery for the world’s largest real estate market.
By Leyla Şirinova
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