China's new home prices fall at fastest pace in over 3 years in February, survey shows

China's new home prices fall at fastest pace in over 3 years in February, survey shows

China’s New Home Prices Drop Sharply in February, Deepening Property Sector Woes

China’s new home prices fell at the fastest pace in over three years in February, according to a private survey, highlighting ongoing struggles in the property sector despite policy support. The China Index Academy reported that prices in 100 cities declined 0.04% month-on-month, reversing a 0.18% gain in January and marking the steepest drop since December 2022. Official data for 70 cities, due March 16, has shown no monthly price increases since May 2023.

The prolonged downturn, which began with the 2021 sectoral crisis, has eroded household wealth and dampened consumption in the world’s second-largest economy. Weak demand persists despite measures such as relaxed purchase rules, reduced down-payment requirements, and recent adjustments in cities like Shanghai, which allowed eligible buyers to access higher mortgage limits and purchase additional homes.

Analysts caution that these interventions may provide temporary relief but are unlikely to reverse the broader decline. “Such measures could offer a short-term boost to the market, but cannot reverse the broad down-cycle,” said Larry Hu, head of China economics at Macquarie Group. He noted that prices have fallen to 2016 levels, requiring “much stronger policy intervention” to reset market expectations, though he does not anticipate unconventional measures at this stage according to Macquarie Group analysis.

January’s data, released February 13, showed a 0.4% monthly decline in new home prices, consistent with the previous month’s drop. The sector’s challenges underscore broader economic risks, as property investment—once a key growth driver—continues to contract. With consumer confidence and developer liquidity under pressure, policymakers face a delicate balancing act to stabilize the market without triggering excessive debt accumulation.

Reuters, March 1, 2026: Reuters, March 1, 2026
Reuters, February 13, 2026: Reuters, February 13, 2026