China’s New Home Prices Post Sharpest Drop Since 2022 Amid Ongoing Property Slump

China’s new home prices recorded their steepest decline in more than three years in February, highlighting the persistent weakness in the country’s property market despite continued policy support. According to data released Sunday by the China Index Academy, a leading real estate research firm, new home prices across 100 cities fell 0.04% month-on-month. This reversed January’s 0.18% gain and marked the sharpest drop since December 2022.

The latest figures underscore the prolonged downturn in China’s real estate sector, once a major driver of economic growth. Official data for 70 major cities, set for release on March 16, has consistently shown that new home prices have not achieved a monthly increase since May 2023. The ongoing housing slump has weighed heavily on household wealth, dampened consumer confidence, and added pressure to the world’s second-largest economy.

Since the property crisis began in 2021, Chinese authorities have rolled out multiple rounds of policy easing to stabilize the housing market. Measures have included loosening home purchase restrictions, lowering down-payment requirements, and expanding mortgage access. Most recently, Shanghai introduced new steps allowing eligible buyers to purchase additional properties and qualify for higher mortgage limits in an effort to boost housing demand.

However, analysts remain cautious about the outlook for China’s housing market. Larry Hu, head of China economics at Macquarie Group, noted that while recent measures may provide a short-term lift, they are unlikely to reverse the broader downward trend in property prices. With home values now hovering around 2016 levels, experts suggest that significantly stronger policy intervention would be required to restore market confidence. For now, expectations of unconventional stimulus remain limited, signaling continued challenges for China’s real estate sector in 2026.