The Chinese real estate market remains sluggish. Data released by the China Index Research Institute on September 1, 2026, shows that in the first 8 months of the year, the prices of second-hand residential properties in one hundred cities have cumulatively dropped by 3.76%. The price decline in August was even larger compared to July, indicating that the overall market still faces downward pressure.
In August, the average price of second-hand residential properties in one hundred cities was 12,527 yuan per square meter, a decrease of 0.45% month-on-month and 7.08% year-on-year. Out of the one hundred cities, only 7 saw an increase in second-hand residential prices in August, while 93 cities experienced declines. The market still needs to stimulate transactions through “price incentives.”
Breaking down by tiers, in August, second-hand residential prices in first-tier, second-tier, and third-fourth tier cities fell by 0.35%, 0.54%, and 0.41% respectively on a monthly basis. The declines in first and second-tier cities expanded compared to the previous month, while the declines in third and fourth-tier cities slightly narrowed.
In terms of new properties, in August, some key cities such as Shanghai, Hangzhou, Chengdu, and Tianjin saw the entry of high-quality properties into the market, driving a structural increase in the prices of new properties in one hundred cities. The average price of new residential properties in one hundred cities in August was 17,255 yuan per square meter, up 0.15% month-on-month and 2.04% year-on-year. In the first 8 months, the prices of new residential properties in one hundred cities have cumulatively risen by 1%.
Analyst Meng Chao from the China Index Research Institute pointed out that from January to August, the prices of new residential properties in one hundred cities have increased by 1%, while the average prices of second-hand residential properties have declined by 3.76%.
It is worth noting that second-hand property prices often provide a more accurate reflection of the actual situation in the real estate market than new property prices. New property prices can be influenced by pricing strategies of developers, the introduction of high-priced quality projects, promotional discounts, and other structural factors, leading to a situation where prices may appear to rise on the surface but actual transactions may not be robust. In contrast, second-hand property transactions involve direct negotiation between buyers and sellers, resulting in prices that are more closely linked to real supply and demand dynamics, buyers’ actual purchasing power, and market sentiment.