China’s Home Prices Extend Decline in November as Property Sector Pressures Persist

China’s home prices continued to decline in November, extending a multi-year downturn despite renewed pledges by policymakers to stabilize the sector. Data released on Monday by the National Bureau of Statistics showed that prices of new homes in 70 cities, excluding state-subsidized housing, fell 0.39% month-on-month, following a 0.45% drop in October, the steepest decline this year.

Ongoing Weakness in Existing Homes

Prices of existing homes, which face less government intervention, declined by 0.66% in November, matching the pace recorded a month earlier and underscoring persistent weakness across the market.

Rising Concerns Over the Sector

The latest figures highlight deepening challenges in China’s property sector, where a prolonged slowdown of nearly four years has weighed heavily on sentiment and become a drag on economic growth. Financial strains at China Vanke Co., widely seen as a bellwether for the industry, have also raised concerns about the risk of another debt crisis.

Cautious Outlook Ahead

Analysts at Citigroup have warned that the housing market may face a “harsh reality” in 2026, forecasting a further 11% nationwide decline in sales value next year unless liquidity conditions improve.

Policy Measures Under Consideration

Amid growing concern, Chinese authorities are considering measures including mortgage support and tax incentives, as well as encouraging the acquisition of unsold housing inventory to address elevated supply levels. Recent steps have also included tighter controls on the release of housing sales data and increased scrutiny of pessimistic commentary on the sector.

Warnings of Further Downside

Industry experts caution that downward pressure may persist in the near term, with research and credit rating agencies expecting additional declines in prices and sales before the market stabilizes, while non-performing property-related debt at banks is likely to remain elevated.

✦ ArchUp Editorial Insight

China’s continued decline in home prices reflects a prolonged structural recalibration of its Contemporary urban housing model, shaped over decades by high-density development, speculative demand, and state-mediated growth. The data from November underscores how standardized residential typologies and rapid land absorption strategies have outpaced genuine household demand, leaving cities with surplus inventory and weakened spatial dynamics. However, the persistence of falling prices in existing homes raises deeper questions about contextual relevance and functional resilience, particularly where housing has functioned more as a financial instrument than as lived urban fabric. Policy responses centered on liquidity support and inventory absorption may stabilize balance sheets, yet they risk postponing a more fundamental reassessment of housing quality, social fit, and long-term urban viability. Ultimately, the sector’s recovery will depend on re-aligning architectural production with demographic realities and sustainable urban ambition.