China's New Home Prices Down 4% Year-on-Year in April 2025
New home prices in China have shown no growth since May 2023, despite government efforts to stabilize the real estate sector, which has been in a prolonged slump.
China Real EstateHome Prices In ChinaChina Property CrisisBeijingReal Estate SectorReal EstateMay 19, 2025
New home prices have shown no growth since May 2023 as China attempts to lift the real estate sector, once a key driver of the economy, from a prolonged slump.
From a year earlier, prices in April were down 4.0%, a slight improvement from a 4.5% decline last month, data from China's National Bureau of Statistics showed.
Beijing has announced a raft of stimulus measures in recent weeks to bolster the economy amid trade uncertainties with the U.S., including trimming mortgage costs for some buyers to turn around a property crisis that began in 2021.
Indebted developers have since struggled to repay their borrowings and deliver pre-sold homes, dampening confidence in the sector.
Resale home prices declined across tier-one, tier-two, and tier-three cities on both a monthly and annual basis.
Separate official data showed property investment dropped 10.3% year-on-year and sales by floor area shrank 2.8% in January-April.
The head of China's financial regulator promised to roll out more measures to help sustain the 'stabilising trend of the property sector' at a high-profile press conference earlier this month.
Meanwhile, the central bank cut the interest rate for housing provident fund loans by 25 basis points, effective May 8, reducing borrowing costs for some buyers.
Despite these efforts, the real estate sector continues to face significant challenges. The government is under pressure to find a balance between stimulating the market and preventing another bubble. Analysts remain cautiously optimistic, noting that the recent measures are a step in the right direction, but more comprehensive reforms may be necessary to fully restore confidence in the sector.
Frequently Asked Questions
What is the trend in new home prices in China as of April 2025?
New home prices in China have shown no growth since May 2023, and in April 2025, they were down 4.0% year-on-year, slightly improved from a 4.5% decline the previous month.
What measures has the Chinese government taken to stabilize the real estate sector?
The Chinese government has announced several stimulus measures, including trimming mortgage costs for some buyers and cutting the interest rate for housing provident fund loans by 25 basis points, effective May 8, 2025.
How has the property crisis affected developers in China?
Indebted developers in China have struggled to repay their borrowings and deliver pre-sold homes, which has dampened confidence in the sector and contributed to the prolonged slump.
What is the current state of resale home prices in China?
Resale home prices have declined across tier-one, tier-two, and tier-three cities on both a monthly and annual basis, reflecting the overall downturn in the real estate market.
What is the outlook for the Chinese real estate sector according to financial regulators?
The head of China's financial regulator has promised to roll out more measures to help sustain the 'stabilising trend of the property sector,' indicating that further reforms and support are expected to address the ongoing challenges.
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