China New Home Prices Extend March Decline as 2025 Sales Stay Far Below 2021 Peak
Updated
Updated · CNN · May 17
China New Home Prices Extend March Decline as 2025 Sales Stay Far Below 2021 Peak
10 articles · Updated · CNN · May 17
March new home prices fell nationwide again, underscoring that China’s housing slump remains entrenched five years after the first major developer defaults.
7.3 trillion yuan in 2025 new home sales value—down from 16.2 trillion yuan in 2021—and an 8.7% drop in last year’s sales volume show why buyers are still holding back.
Weak incomes, delayed projects and falling prices have made households wary of mortgages, even as Beijing keeps housing stabilization on its policy agenda.
The downturn traces back to a debt-fueled building boom that once made property about 30% of China’s economy; Evergrande was ordered wound up in 2024, while Country Garden and Vanke have also faced distress.
Nine in 10 Chinese households own homes, but analysts say the market is unlikely to regain its old role as a growth engine, with renting becoming more acceptable for younger families.
As China's youth abandon homeownership for renting, is the country's foundational economic pillar crumbling for good?
With its housing market collapsing, can China build a new economic engine before its citizens' wealth and confidence completely vanish?
China's property crisis is erasing trillions in wealth. How will this 'great fall' reshape the global economy and investment landscape?
China's Real Estate Crisis 2026: Deepening Downturn, Structural Oversupply, and the Long Road to Recovery
Overview
China's real estate market is experiencing a significant downturn, with new home prices falling steadily since April 2022 due to post-pandemic contraction and ongoing debt issues. Sales volumes have sharply reduced, and the sector faces persistent oversupply. However, recent data from March 2026 shows the pace of price decline is slowing, suggesting the market may be nearing a bottom. Despite this, the overall outlook remains challenging, as structural problems like high inventory and weak demand continue to pressure developers and the broader economy, making a quick recovery unlikely.