China June Shanghai new home prices +6.0% y/y (May +5.9%) – Stats Bureau

China June Shanghai new home prices +6.0% y/y (May +5.9%) – Stats Bureau

In the latest development, China's real estate market continues to show mixed signals, with new home prices in Shanghai increasing by 6.0% year-over-year (y/y) in June, according to the National Bureau of Statistics [2]. This marks a slight uptick from the previous month, where prices rose by 5.9% y/y in May [2].

Despite the increase in Shanghai, the broader trend in China's real estate market remains challenging. From June 2023 to June 2025, the average price per square meter for secondhand apartments in 100 major cities fell by 13% [1]. This decline has been attributed to various factors, including the impact of the pandemic and regulatory measures aimed at curbing speculative bubbles.

However, there are signs of resilience. China Jinmao Holdings, for instance, saw its sales rise by 21% in the first five months of 2025 compared to the year-ago period, outperforming the top 100 Chinese homebuilders [1]. This suggests that while the overall market is facing headwinds, some players are managing to find opportunities.

The Chinese government has been proactive in addressing the real estate sector's issues. Officials from the housing ministry recently visited Guangdong and Zhejiang provinces to inspect the local real estate market and called for greater stabilization efforts [1]. Additionally, top leaders have set a new tone by calling for a halt to the decline in the real estate sector since late September [1].

However, the impact of the property slump continues to weigh on consumer sentiment and broader economic growth. Real estate and related industries once accounted for more than a quarter of China's economy [1]. The sector's adjustment has a long-lasting and profound impact on the Chinese economy, with local governments' fiscal revenues being substantially reduced [1].

In conclusion, while there are signs of stabilization and even growth in certain segments of the Chinese real estate market, the broader trend remains challenging. Investors and financial professionals should closely monitor these developments and consider the broader economic context when evaluating opportunities in the sector.

References:
[1] https://www.cnbc.com/2025/07/09/cnbcs-the-china-connection-newsletter-the-hidden-drag-on-chinas-economy.html
[2] https://www.statista.com/statistics/243404/sale-price-of-residential-real-estate-in-china/