China’s New Home Prices Continue to Rise in January as Property Market Recovery Remains Uneven
BEIJING, Feb 1, 2026 — China’s property sector recorded another modest improvement in January, with new home prices continuing to rise while declines in the resale market showed further signs of easing, according to an industry survey.
Figures released by China Index Academy revealed that average new home prices across 100 major cities rose by 0.18 per cent month-on-month. Although slower than December’s increase, the data suggests that stabilisation efforts are gradually taking effect.
The report noted that major cities such as Shanghai, Chengdu and Hangzhou experienced more stable growth following the launch of premium and upgraded residential projects. These developments attracted higher-income buyers and helped support prices in first- and second-tier markets.
Local government measures, including relaxed mortgage requirements and targeted incentives, also contributed to improving demand in key urban areas.
However, challenges remain in lower-tier cities. Third- and fourth-tier markets continue to struggle with excess housing inventory and weaker consumer confidence, resulting in persistent price declines on both a monthly and annual basis.
In the resale segment, home prices fell by 0.85 per cent in January, narrowing from a 0.97 per cent decline in December. While prices remain under pressure, the slower pace of decline indicates that selling pressure is beginning to ease.
China’s property sector has faced prolonged difficulties since 2021, when stricter financial regulations under the “three red lines” policy triggered a liquidity crisis among developers. Numerous companies defaulted on debt, leading to stalled projects and widespread market uncertainty.
The downturn severely affected buyer confidence and investment sentiment, making recovery a slow and complex process. In response, authorities have gradually introduced supportive policies to restore stability.
Local media reports suggest that developers are no longer required to submit monthly financial data under the regulatory framework, signalling a shift towards a more flexible supervisory approach.
Earlier this year, the Communist Party’s official journal, Qiushi, described the sector as undergoing a “profound adjustment” and called for stronger and more coordinated policy support.
Analysts expect housing transactions to slow in February due to the Spring Festival holiday, as many buyers postpone purchases. However, activity is likely to pick up in March when high-quality land and new projects enter the market.
Despite recent improvements, experts caution that China’s property recovery remains fragile and uneven. While major cities are showing resilience, smaller cities continue to face structural challenges.
Industry observers believe sustained policy support, improved financing conditions, and renewed consumer confidence will be crucial in determining whether the sector can regain long-term stability and restore its role as a key driver of economic growth.
-aseannews.my
