China's home prices continue to ease in May 2025

China's home prices in 70 large and medium-sized cities continued the downward trend in May, though the pace of decline slowed, the National Bureau of Statistics said Monday.

"In May, home prices in 70 major cities continued to fall on a yearly basis, but the pace of decline further eased," said NBS statistician Wang Zhonghua.

New home prices in first-tier cities decreased by 1.7 percent year on year, narrowing by 0.4 percentage points compared to the previous month, according to the NBS data. Among these cities, Shanghai saw an increase of 5.9 percent, while Beijing, Guangzhou, and Shenzhen experienced declines of 4.3 percent, 5.8 percent, and 2.6 percent, respectively.

In second- and third-tier cities, new home prices fell by 3.5 percent and 4.9 percent year on year, with drops narrowing by 0.4 and 0.5 percentage points, respectively.

In May, prices of second-hand homes in first-tier cities declined by 2.7 percent year on year, a reduction of 0.5 percentage points from the previous month, according to the NBS. Notably, Beijing, Shanghai, Guangzhou, and Shenzhen saw declines of 0.7 percent, 0.1 percent, 6.6 percent, and 3.2 percent, respectively.

Meanwhile, second- and third-tier cities reported year-on-year decreases in prices of second-hand homes of 6.1 percent and 6.9 percent, with reductions narrowing by 0.4 and 0.5 percentage points, respectively.

NBS data also showed that home prices in 70 large and medium-sized cities dipped in May on a month-on-month basis.

On a monthly basis, new home prices in first-tier cities saw a decline of 0.2 percent in May, reversing the previous month's stability. Specifically, Shanghai recorded an increase of 0.7 percent, while Beijing, Guangzhou, and Shenzhen experienced declines of 0.4 percent, 0.8 percent, and 0.4 percent, respectively.

In May, prices of second-hand homes in first-tier cities dropped by 0.7 percent, 0.5 percentage points larger than the previous month level. Beijing, Shanghai, Guangzhou, and Shenzhen saw decreases of 0.8 percent, 0.7 percent, 0.8 percent, and 0.5 percent, respectively.

From January to May, real estate development investment decreased by 10.7 percent year on year, NBS spokesperson Fu Linghui said at a press conference on Monday.

In general, policies aimed at stabilizing the real estate market have shown continued effectiveness in halting the decline; moreover, the data in May added to evidence that the real estate market posted overall stable performance, Fu said.

However, it should be noted that the market is still in the adjustment phase, with market confidence yet to be fully restored and the supply-demand relationship still needing improvement. Continued efforts are required to reverse the downturn and stabilize the real estate market.

Moving forward, it is important to sustain the momentum of urban renewal and the renovation of dilapidated buildings, increase the supply of "quality homes," and actively build a new model for real estate development to promote the stable and healthy development of the market, Fu added.

For the first time, the phrase "quality homes" appeared in China's government work report this year. The report, published in March, called for efforts to "improve the standards and regulations on building quality homes that are safe, comfortable, eco-friendly, and smart."

Since the fourth quarter of last year, the central government has stepped up efforts to halt the downturn of the real estate market. An integrated policy package has been rolled out to boost investment, accelerate the renovation of old urban neighborhoods, expand the supply of affordable housing, and implement a "white list" mechanism to direct financial support to qualified developers.