China’s housing prices continued to fall in June, with prices in top-tier cities experiencing negative growth for 19 consecutive months. Real estate investment in the first half of the year decreased by 11.2% year-on-year, and the sales area of commercial housing decreased by 7.5% compared to the same period.
According to data released by the National Bureau of Statistics of the Chinese Communist Party on July 15th, the real estate market in China continues to decline. In June, the prices of newly built commercial residential buildings in 70 large and medium-sized cities fell by 0.3% compared to the previous month, expanding by 0.1 percentage point from May and marking the largest monthly decline since October 2024.
Statistics on the price changes of commercial residential buildings in 70 large and medium-sized cities show that in 44 of these cities, the prices of new residential buildings decreased, with 5 more cities experiencing price drops compared to the previous month. Prices in top-tier cities fell by 0.2%, showing negative growth for 19 consecutive months.
In June, new house prices in top-tier cities decreased by 1.4% year-on-year, with Shanghai being the only city to see an increase of 6%, while Beijing, Guangzhou, and Shenzhen experienced declines of 4.1%, 5.1%, and 2.5% respectively.
Second and third-tier cities saw price drops of 3.0% and 4.6% respectively, with the declines narrowing by 0.5% and 0.3% compared to May.
Reuters reported that in June, China’s new house prices experienced the largest drop in nearly eight months, indicating limited effectiveness of stimulus policies and the market’s struggle to shake off downward pressure.
In addition to price declines, real estate investment and sales data are also trending downward. According to “Finance and Economy” magazine, total real estate development investment in China from January to June 2025 amounted to 5.4 trillion RMB, a decrease of 11.2% year-on-year, further widening the decline from the previous five months by 0.6 percentage points.
Data released by the National Bureau of Statistics of the Chinese Communist Party on July 15th showed that in the first half of 2025, the total sales area of commercial housing nationwide was 558 million square meters, down by 7.5% compared to the same period last year. Among these, residential sales area amounted to 423 million square meters, witnessing a 7.5% year-on-year decrease.
The total sales value of commercial housing in the first half of 2025 was 5.5 trillion RMB, a 5.5% decrease compared to the same period last year.
The Wall Street Journal noted that against the backdrop of high unemployment, weakening household income expectations, and continued decline in housing prices, the market lacks strong buying power support. Many potential buyers are choosing to delay or abandon their property ownership plans, leading to overall weakened purchasing intentions.
Despite the Chinese Communist Party’s various support measures, the stabilization of the real estate market has yet to materialize. Experts point out that if there are no major policy changes in the second half of the year, housing prices may continue to face pressure.