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China Home Prices Fall Again in December, Annual Decline Steepest in Five Months

Markets question whether new financing support for stalled projects can steady the sector.

Overview

  • Official data show new-home prices fell 0.4% month on month in December and 2.7% year on year, the fastest annual drop in five months.
  • Price weakness was broad-based, with 58 of 70 tracked cities posting monthly declines and only six recording gains.
  • Existing home prices weakened further across tier-one, tier-two and tier-three cities, indicating pressure across major and smaller markets.
  • For 2025, property investment fell 17.2% and home sales by floor area dropped 8.7%, underscoring subdued demand and restrained developer activity.
  • Regulators said they would promote normal operations of programmes to accelerate financing for stalled residential projects, as the Communist Party journal Qiushi called for strong policy actions to stabilise expectations.