In September 2025, China’s new home prices fell by 0.4% month-on-month across seventy major cities, marking the sharpest decline in almost a year. Year-on-year, the drop reached about 2.2%, while resale properties experienced even deeper losses, particularly in tier-one cities where prices slid by more than 3%.
The housing downturn continues to weigh heavily on China’s broader economy, once fueled by real estate investment and urban growth. As property values decline, consumer confidence weakens, dampening domestic spending and curbing investments. The once powerful growth engine now acts as a drag, creating ripple effects across industries and regional markets.
Developers are struggling under mounting debts, unsold inventories, and declining buyer confidence. Government efforts to stimulate the market through mortgage rate cuts and easing policies have yet to reverse the trend. Oversupply in smaller cities and economic uncertainty keep both investors and first-time buyers on edge.
China’s property slowdown has broader regional implications, particularly for neighboring economies like Taiwan that depend on cross-strait trade and investment. If prices continue to fall, policymakers may be forced to intervene more decisively. The coming months will reveal whether China can stabilize its housing market or sink deeper into a long correction.
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