China home price slump eases, fuelling hopes for market recovery

Published Mon, Oct 19, 2026 · 10:51 AM

CHINA’S home prices fell at a slower pace in September, spurring hopes that the battered real estate market is turning a corner as the latest stimulus takes effect.

New home prices in 70 cities, excluding state-subsidised housing, dropped 0.14 per cent from August when they slid 0.17 per cent, figures from the National Bureau of Statistics showed on Monday (Oct 19).

Resale home values, which are subject to less government intervention, decreased 0.26 per cent.

Chinese authorities are seeking toend the real estate slump that has dragged on economic growth for more than five years.

Some analysts have observed a modest recovery since policymakers unveiled fresh support measures in September, although the change came too late to explain the overall improvement in monthly data.

“We see 2027 as a pivotal year for a home price recovery in core cities,” Citigroup analyst Griffin Chan wrote in a recent note, citing improvements in indicators including sales and inventory.

“We are awaiting more signals before making a conviction call.” 

China has adopted a targeted approach as it rolls out more aggressive steps to meet its annual growth target of 4.5 to 5 per cent.

The limited scope of the housing measures reflects policymakers’ desire to stabilise the economy without resorting to a broad fiscal expansion. BLOOMBERG