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New home prices in China were reported to have remained flat in April 2025, marking the second consecutive month of no growth. A 4.0% year-on-year decline was noted despite recent government stimulus, including mortgage rate cuts and lending adjustments. The prolonged property downturn, triggered in 2021 by developer debt and incomplete projects, has continued to weaken buyer confidence. Resale prices have also dropped across all city tiers. Property investment fell by 10.3% from January to April. Although financial support has been introduced, the market has remained subdued, with observers suggesting more robust intervention is needed to restore sustained sector recovery.
New home prices in China were reported to have remained flat in April 2025 for the second consecutive month, according to official figures released by the National Bureau of Statistics. This continued stagnation has been observed for nearly two years, as efforts made by policymakers to revive the troubled property sector have so far failed to yield strong results. Advertisement
No monthly growth in new home prices has been recorded since May 2023. The sector, once considered a major engine of China's economic growth, has been experiencing a prolonged downturn. In April, new home prices were found to have remained unchanged compared to March, extending the existing trend of zero growth.
When compared with the same period in 2024, a drop of 4.0% in new home prices was noted in April. Though this decline was slightly less severe than the 4.5% year-on-year fall recorded in March, it has still reflected continued weakness in the market.
Several measures have been introduced by the Chinese government in recent weeks to stimulate the broader economy amid growing trade tensions with the United States. These have included steps such as the reduction of mortgage costs for certain homebuyers and adjustments to lending rates. However, the effectiveness of these interventions in addressing the core issues affecting the real estate market has remained limited.
Since 2021, a major property crisis has gripped China, triggered by the financial distress of large real estate developers. Many of these firms have struggled to repay debts and have failed to complete the delivery of pre-sold housing units. This has severely dented consumer confidence and led to a cautious approach among buyers.
Prices of resale homes were also reported to have declined across cities of all tiers, including the tier-one, tier-two, and tier-three categories. This trend has underscored the widespread nature of the downturn, which has affected both new and existing residential properties across the country.
Additional data revealed that property investment during the period from January to April had dropped by 10.3% on a year-on-year basis. At the same time, total sales by floor area were seen to have declined by 2.8%, further indicating that demand in the real estate sector has remained under strain despite policy support.
Earlier this month, during a widely covered press briefing, the head of China's top financial regulatory body assured the public that further actions would be implemented to 'sustain the stabilising trend of the property sector.' According to the official, these upcoming measures would be aimed at restoring confidence and driving recovery in a more consistent manner.
In a related move, the central bank was reported to have cut the interest rate on housing provident fund loans by 25 basis points. The change, which came into effect on 8 May, has been expected to reduce borrowing costs for a segment of homebuyers, thereby encouraging property purchases.
Although policy adjustments have been made and financial support mechanisms have been activated, market recovery has continued to face challenges. Sentiment among buyers has remained fragile, while developers have still been grappling with liquidity issues and incomplete projects.
It has been anticipated by observers that further government support may be required to bring about a meaningful recovery in the sector. For now, China's real estate market has continued to reflect subdued activity, with home prices showing no immediate signs of rebounding.
In the coming months, close attention will be paid to new regulatory developments and monetary measures. Whether these interventions will succeed in revitalising a sector that has long underpinned China's economic rise remains to be seen.
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