In recent years, the real estate market in China has been continuously sluggish. A report released by the China Index Research Institute shows that in May 2026, the average price of second-hand homes in one hundred cities fell both year-on-year and month-on-month. As of now, the price of second-hand homes has been declining for 49 consecutive months.
On June 1st, the China Real Estate Research Institute published the Hundred-City Price Index, which showed that in May, the average price of second-hand residential properties in one hundred cities was 12,692 yuan per square meter, a year-on-year decrease of 7.99% and a month-on-month decrease of 0.32%. The drop was 0.2 percentage points narrower than the previous month, marking the 49th consecutive month of decline in the price of second-hand residential properties in one hundred cities, equivalent to four years and one month.
Data shows that the prices of second-hand residential properties in first-tier, second-tier, and third/fourth-tier cities fell by 0.15%, 0.34%, and 0.38% respectively on a monthly basis. The decline in first-tier cities narrowed by 0.01% compared to the previous month, with Shanghai increasing by 0.13% and Shenzhen decreasing slightly by 0.04%. The second-tier and third/fourth-tier cities saw decreases narrowed by 0.17% and 0.16% compared to the previous month. Looking at the number of cities with price increases or decreases, 12 cities saw price increases on a monthly basis, while 87 cities saw price decreases and 1 city remained unchanged.
In terms of year-on-year changes, prices in first-tier, second-tier, and third/fourth-tier cities fell by 7.32%, 8.54%, and 7.74% respectively.
Regarding new homes, in May, the average price of new homes in one hundred cities was 17,156 yuan per square meter, an increase of 0.16% month-on-month and 2.03% year-on-year. The price of new homes continued the trend of slight increase in structure.
In terms of different city tiers, the price of new homes in first-tier cities increased by 0.26% month-on-month and 5.54% year-on-year, with Shenzhen, Shanghai, and Guangzhou showing monthly increases of 0.48%, 0.44%, and 0.19% respectively. Second-tier cities saw a month-on-month increase of 0.23% and a year-on-year increase of 1.75%. As for third/fourth-tier representative cities, there was a month-on-month decrease of 0.14% and a year-on-year decrease of 2.6%. Looking at the number of cities with price increases or decreases, 29 cities saw price increases on a monthly basis, while 65 cities saw price decreases and 6 cities remained unchanged.
Second-hand home prices are considered a more reliable indicator of the real estate market direction compared to new home prices. New home prices are influenced by factors such as government land pricing, various taxes and fees, developer pricing strategies, and pre-sale policies, whereas second-hand home prices represent direct transactions based on real housing supply in the current market environment, reflecting market supply and demand dynamics, buyer confidence, and economic conditions more accurately.
In addition, in terms of rental housing, the demand for rental properties in key cities continued to decline in May, with the average rent per square meter per month for residential properties in fifty cities being 33.94 yuan, a decrease of 0.11% month-on-month and 3.17% year-on-year.