China real estate investment falls 20.6% through September

China’s real estate sector continues to face significant headwinds, though some indicators suggest a potential stabilization. Real estate development investment fell 20.6% through September 2026 compared to the same period in 2025, driven by sharp declines in construction starts, new-home sales, and developer financing.

Data from the National Bureau of Statistics shows that new home prices in 70 major cities fell 0.1% month-on-month in September, matching the decline seen in August. On an annual basis, prices dropped 2.8%, which represents a slower rate of decline compared to the 3.0% drop recorded in August.

Market performance varies significantly by region. In first-tier cities, new home prices rose by 0.1% month-on-month, with Shanghai, Guangzhou, and Shenzhen seeing increases of 0.2%, 0.2%, and 0.3% respectively, while Beijing saw a 0.2% decrease. In contrast, smaller cities continue to experience falling prices. Analysts note that while the slump persists, recent government stimulus measures may be contributing to a narrowing of price declines, leading some to view 2027 as a potential pivotal year for recovery in core cities.