In June this year, average new house prices in 100 major cities in China amounted to RMB 17,184/square meter ($2,523/sq.m.), up 0.16 percent month on month, while rising by 2.0 percent year on year, as announced by CIA, the largest independent property research organization in China.
Meanwhile, in June, the average second-hand house prices in the 100 major Chinese cities amounted to RMB 12,639/square meter ($1,856/sq.m.), down 0.42 percent month on month, 0.10 percentage points faster than the decline recorded in May this year, while down 7.68 percent year on year, 0.31 percentage points slower than the year-on-year decline recorded in the previous month.
On the policy front, a recent article published in Qiushi- the official journal of the Central Committee of the Communist Party of China, emphasized the need to "accelerate the repair of household balance sheets and focus on stabilizing the real estate market." Thereby, it is thought that the policies to boost real estate sector will continue to exert efforts on both the supply and demand sides in the second half of the year. On the demand side, housing provident fund (HPF) policies are likely to be further optimized and adjusted, with local governments potentially stepping up efforts to expand the scope of usage and coverage of HPF contributions, as well as increase loan limits. On the supply side, local governments will continue to adhere to the guidance of controlling new supply and regulating land supply, while intensifying efforts to revitalize existing stock. Policies for purchasing existing commercial housing and land inventories are expected to be further implemented, and supporting policies for urban renewal will also be continuously improved.
It is thought new housing prices might improve in the second half of 2026, while second-hand housing prices might fluctuate within a limited range in the given period.
