China’s property market continues its downward spiral, showing no signs of recovery as both home prices and investment figures deteriorate further. New-home prices in 70 major cities dropped by 4.6% in April compared to the same time last year. This marks yet another month in a nearly four-year stretch of consistent year-on-year price declines.

Existing-home prices performed even worse, falling 6.8% year-over-year in April after a 7.3% drop in March. These declines have brought the real estate sector into its deepest recession in modern history—surpassing even the downturn seen during the global financial crisis of 2008.

The slowdown extends beyond just prices. Property investment in China declined by 10.3% in the first four months of 2025 compared to the same period last year. Additionally, new construction starts by developers plummeted by 23.8%, underlining a sharp pullback in developer activity and overall market confidence.

Over the last several years, a clear pattern has emerged. After peaking around 2019, both new and existing home prices have steadily decreased. Short-lived moments of stability have failed to reverse the trend, with each year seeing further deterioration. This prolonged downturn reflects deep structural challenges in the sector, from oversupply to weakening demand and cautious consumer sentiment.

As policymakers grapple with how to contain the fallout, the real estate sector—once a key engine of China's economic growth—remains one of the biggest risks to its financial system and broader economy in 2025.

Disclaimer:

The information provided in this article is for informational and educational purposes only and does not constitute financial, investment, or real estate advice. Readers are encouraged to conduct their own research or consult with a qualified professional before making any financial decisions