According to the data released on July 15, house prices for new and second-hand homes in 70 cities in China continued to decline in June. Throughout the second quarter, the price drop for second-hand homes in first-tier cities has shown an expanding trend.
The National Bureau of Statistics of the Communist Party of China released the “Changes in the Sales Prices of Commercial Residential Buildings in 70 Large and Medium-Sized Cities in June 2025” on July 15.
The data revealed that in June this year, the sales prices of new commercial residential buildings in first-tier cities dropped by 0.3% compared to the previous month, expanding by 0.1 percentage points from May. Among the four first-tier cities, Beijing, Guangzhou, and Shenzhen had declines of 0.3%, 0.5%, and 0.6%, respectively, while Shanghai was the only city among the four first-tier cities to see an increase in prices, rising by 0.4% compared to the previous month. Prices in second-tier cities decreased by 0.2% compared to the previous month, and third-tier cities saw a 0.3% decrease, staying consistent with the previous month.
Looking at year-on-year data, the prices of new homes in first-tier cities dropped by 1.4%. Beijing, Guangzhou, and Shenzhen experienced declines of 4.1%, 5.1%, and 2.5%, respectively, while Shanghai saw an increase of 6%. Second and third-tier cities had year-on-year declines of 3% and 4.6%, respectively.
Compared to new homes, the cooling in the second-hand housing market was more pronounced. In June, the sales prices of second-hand homes in first-tier cities dropped by 0.7%, with Beijing experiencing a 1% decrease, while Shanghai and Guangzhou both dropped by 0.7% and Shenzhen by 0.5%. The price declines for second-hand homes in second and third-tier cities expanded by 0.1 percentage points to 0.6%.
Year-on-year, the prices of second-hand homes in first-tier cities decreased by 3%, with Beijing and Shanghai seeing declines within 2%, while Guangzhou topped the list with a decrease of 5.9%. Second and third-tier cities saw year-on-year decreases of 5.8% and 6.7%, respectively.
Overall, in the second quarter of 2025, the price drop for second-hand homes in first-tier cities showed an expanding trend. In April, May, and June, prices dropped by 0.2%, 0.7%, and 0.7%, respectively.
According to Li Yujia, Chief Researcher of the Housing Policy Research Center of the Guangdong Provincial Institute of Urban Planning, the widening price declines in first-tier cities have resulted in an overall expansion of declines across the 70 cities. Li Yujia believes that the impact of new regulations on new products has led to an increase in listings for second-hand homes. Additionally, the demand for house swapping has increased, leading to a rise in the urgency to sell second-hand homes and consequently decreasing their prices.
Data released on the same day by the National Bureau of Statistics of the Communist Party of China showed that the overall real estate market is still declining. From January to June, the sales area of new commercial buildings was 458.51 million square meters, a decrease of 3.5% year-on-year, with residential sales areas dropping by 3.7%. The sales value of new commercial buildings was 4.4241 trillion yuan, a decrease of 5.5%, with residential sales value down by 5.2%.
During the period from January to June, real estate development investment was 4.6658 trillion yuan, a decrease of 11.2% year-on-year, with residential investment down by 10.4%. The construction area of real estate development enterprises was 6,333.21 million square meters, a decrease of 9.1% year-on-year, with residential construction area down by 9.4%. The new construction area of buildings was 303.64 million square meters, a decrease of 20.0%, with residential new construction area down by 19.6%. The completed area of buildings was 225.67 million square meters, a decrease of 14.8%, with the completed residential area decreasing by 15.5%.
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