China's September home price decline slows, sparking recovery optimism
In September, new home prices in 70 Chinese cities fell 0.14% from August, a slower drop than the previous month, raising hopes of a market turnaround.
The National Bureau of Statistics reported that in September, new home prices in 70 Chinese cities, not counting state-subsidised housing, declined 0.14% from August, a narrower fall than the 0.17% drop recorded the month before. Resale home values, which face less direct government control, decreased 0.26% over the same period. Chinese officials continue to seek ways to end a real-estate slump that has weighed on growth for over five years, deploying targeted stimulus rather than broad fiscal expansion.
Some market observers say the latest policy steps introduced in September are beginning to show effect, though the data remain mixed. Citigroup analyst Griffin Chan highlighted that 2027 could be pivotal for price recovery in major cities, citing improving sales and inventory trends, but he cautioned that more evidence is needed before forming a firm conviction.
Why it matters
Slowing price declines suggest China's housing market may be stabilising, which is crucial for the country's broader economic health.
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