China's property market remains under pressure, with home prices falling for the 18th consecutive month in November 2025, according to official data. Authorities have announced new measures to prevent further deterioration, targeting both supply and demand factors.
- Home prices fell 3.2% year-on-year in November 2025, marking the 18th consecutive monthly decline.
- Shenzhen recorded the steepest drop at 5.3%, followed by Shanghai at 4.1%.
- Government introduced RMB 1.2 trillion in special-purpose bonds to complete stalled housing projects.
- Transaction volumes dropped 12% month-on-month in November 2025.
- New home sales in top 100 cities fell 17% year-on-year.
- Property sector contributes approximately 25% to China’s GDP, making stabilization critical.
Home prices in China declined for the 18th straight month in November 2025, with the national average dropping 3.2% year-on-year, according to preliminary figures from the National Bureau of Statistics. In key metropolitan areas, the decline was steeper: Beijing saw a 2.8% drop, Shanghai recorded a 4.1% fall, and Shenzhen experienced a 5.3% year-on-year decrease. These figures underscore persistent weakness in consumer confidence and the ongoing deleveraging of property developers. The government has responded with a series of targeted interventions. In December 2025, the Ministry of Housing and Urban-Rural Development unveiled a package of measures aimed at boosting demand, including expanded eligibility for first-time homebuyers' loans and relaxed restrictions in 23 cities. Additionally, authorities authorized local governments to issue up to RMB 1.2 trillion in special-purpose bonds to support the completion of stalled housing projects, benefiting developers such as Country Garden, Vanke, and Evergrande, which have faced liquidity challenges. Despite these efforts, the housing market's recovery remains fragile. Transaction volumes in November dropped 12% compared to the previous month, and new home sales in the top 100 cities declined by 17% year-on-year. The slowdown has ripple effects across related sectors, with steel and cement production falling by 5.6% and 7.2% respectively in the third quarter of 2025, signaling reduced construction activity. The sustained downturn raises concerns about broader economic stability, particularly as the property sector accounts for roughly 25% of China’s GDP. Analysts suggest that meaningful recovery will depend on restoring trust in developers, ensuring project completions, and sustaining policy support beyond short-term fixes.