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China’s new home prices fall again in September as recovery stays elusive

By Thomson Reuters Oct 18, 2026 | 9:46 PM

BEIJING, Oct 19 (Reuters) – China’s new home prices fell again in September, marking more than three years without a monthly or annual increase, suggesting policy ​support has yet to generate a broad-based recovery ‌in housing demand.

New home prices dropped 0.1% month on month, matching the pace of decline in August, according to Reuters calculations based on data released by the National Bureau of Statistics.

On an annual basis, prices ‌fell ​2.8%, narrowing from a 3.0% drop ⁠in August, extending a ⁠decline since June 2023.

The housing market’s prolonged downturn has become one of China’s biggest economic challenges, depressing consumer confidence and local government revenues.

Prices of new and resale ​homes in the country’s biggest cities continued to show signs of stabilisation, likely boosted by Shanghai’s further easing of ⁠homebuying restrictions and incentives such ⁠as subsidies announced in August.

In smaller cities, ​however, both new and resale home prices continued to fall month ​on month and year on year.

In a sign ‌that policymakers are seeking to prop up the housing market in smaller cities, the central bank and financial regulator unveiled in late September policies for subsidising mortgage interest payments ⁠for eligible homebuyers.

The policy capped the purchase price of eligible homes at 1.5 million yuan ($224,417), hardly enough to pay for even ⁠a one-bedroom apartment ‌in a tier-one city.

Market woes continue to ⁠act as a drag on domestic demand, ​as ‌many homeowners, seeing the value of their ​homes fall, opt ⁠to save money rather than spend.

Separate data showed property investment and home sales both contracted at a faster pace in the first nine months of the year.

($1 = 6.6840 Chinese yuan)

(Reporting by Liangping Gao, Yukun Zhang and Ryan Woo; Editing ​by Jacqueline Wong)