China's New Home Prices Extend Decline Despite Improvement in Major Cities
April 16: According to Reuters calculations based on data released by the National Bureau of Statistics:
| Metric | Value | Change |
|---|---|---|
| Month-on-month (March) | -0.2% | (vs -0.3% in February) |
| Year-on-year (March) | -3.4% | (deeper than February's -3.2%) |
The year-on-year decline is the sharpest in ten months.
Signs of Improvement
Attention is turning to month-on-month gains in both new home and resold home prices in tier-one cities , offering some relief to distressed property developers.
Developer Challenges
China Vanke posted a net loss of about 88.6 billion yuan for 2025 and is seeking to extend an onshore bond maturing this month after extending three other bonds earlier this year.
Government Measures
Chinese policymakers have rolled out several rounds of support measures, including:
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City-specific policies to curb new housing supply
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Reducing inventory
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Improving market supply-demand balance
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Incentives for home purchases (Shanghai relaxed buying curbs; Wuxi and Yichang offered subsidies)
Context
The persistent weakness suggests troubles facing China's distressed property developers are far from over, even as top leaders repeatedly pledge to arrest a multi-year slide in the sector. The real estate industry fell into a slump around mid-2021 as sales dove and borrowing became more difficult.