China's New Home Prices Fall 4% Year-on-Year in April 2025
China's new home prices remained unchanged in April from the previous month, marking nearly two years of no growth. The property sector continues to struggle despite government efforts to stabilize it.
China Real EstateNew Home PricesProperty CrisisBeijingEconomic StimulusReal Estate NewsMay 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.
Frequently Asked Questions
How have new home prices in China changed year-on-year in April 2025?
New home prices in China fell 4% year-on-year in April 2025, a slight improvement 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 cutting mortgage costs and reducing the interest rate for housing provident fund loans by 25 basis points.
What is the current trend in 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.
How has the property investment and sales performance been in January-April 2025?
Property investment dropped 10.3% year-on-year, and sales by floor area shrank 2.8% in January-April 2025.
What is the impact of the property crisis on China's economy?
The property crisis has dampened confidence in the real estate sector, which was once a key driver of the Chinese economy. This has led to a prolonged slump and necessitated government intervention to stabilize the sector.
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