China’s real estate market continues to slump, with the latest data from real estate research institutions showing that in May 2025, second-hand house prices in the top 100 cities continued to decline, with the downturn still widening. Currently, second-hand house prices have been falling for 37 consecutive months.
Data released by the China Index Research Institute on June 1st revealed that in May, the average price of second-hand residential properties in the top 100 cities was 13,794 yuan per square meter, a decrease of 0.71% compared to the previous month, marking a 37-month decline. Year-on-year, prices dropped by 7.24%. Both month-on-month and year-on-year declines have widened compared to the previous month.
Among them, second-hand house prices in first-tier cities fell by 0.37% month-on-month, while second-tier and third- and fourth-tier cities saw declines of 0.78% and 0.76% respectively.
However, in May, new housing prices in the top 100 cities rose, with an average price of 16,815 yuan per square meter, an increase of 0.3% month-on-month and 2.56% year-on-year. Notably, new housing prices in first-tier cities increased by 0.9% month-on-month, with Shanghai leading the way with a 1.47% increase; second-tier cities saw a 0.06% month-on-month increase, while third- and fourth-tier cities experienced a 0.11% decline.
Huang Tao, General Manager of the Guangzhou Zhongyuan Real Estate Project, analyzed in an interview with the United Morning Post that the reason for the increase in new housing prices in May was mainly due to the launch of more high-quality properties in the core areas of first and second-tier cities that month, despite the majority of properties on the market still facing difficulties in selling.
“For example, in Guangzhou, out of over 400 properties for sale, fewer than 10 high-priced ones are selling well, while the rest are struggling,” Huang Tao said. He pointed out that the continuous decline in second-hand house prices is mainly due to an oversupply in the market and a lack of buyers, leading to price reductions for transactions. As a result, housing prices in Guangzhou have fallen back to levels seen seven to eight years ago.
Huang Tao believes that the current macroeconomic policies are undergoing significant changes both domestically and internationally, leading to a high level of uncertainty. Key policies such as interest rate cuts and reduced down payments have reached a bottleneck, making it difficult to further stimulate transaction growth. He stated, “In the past, buying with borrowed money was profitable when house prices were rising, but now, even with zero down payment, people are hesitant to buy because of pay cuts, layoffs, or loss of income. Without a job, you dare not commit to a mortgage.”