A construction site in Changsha (Image: KHL Group)
Investment in property development in China dropped 18% year on year in the first six months of 2026, according to new figures, as the country’s housing market slump continues into its fifth year.
New home prices fell at a slower pace in June but economists warned that weak demand for residential construction and housing demand would persist into the second half of this year, as Beijing refrains from major stimulus.
New home prices were down by 0.1% in June on the previous month, versus a 0.2% decline in May, according to calculations by Reuters based on data released by the National Bureau of Statistics. On an annual basis, prices fell 3.3%, easing from a 3.5% decline in May.
“China enters the second half of the year facing a more difficult backdrop. Domestic demand remains subdued, while external headwinds are intensifying. Resilient exports have provided an important pillar of growth, but they cannot carry the economy alone,” said Sarah Tan, economist at Moody’s Analytics.
While some commentators suggested that China’s housing market could be close to finding a bottom, others cautioned that the downturn would continue without stronger policy support due to subdued consumer confidence.