China's Housing Market Experiences Severe Downturn

Fresh numbers in China show new home prices dropped at their quickest speed in 11 months back in September. It's a tough spot for families dreaming of their own place, and it's rippling out to shake up the whole economy. In Beijing and Shanghai, those shiny new apartments that used to fly off the market? Not anymore.

Data from China's National Bureau of Statistics, released on October 20, 2025, shows a clear picture. Month over month, prices dipped 0.4 percent in September—sharper than the 0.3 percent slide in August. Over the full year, they fell 2.2 percent, a bit less than August's 2.5 percent drop, but still the steepest pace since last October. Out of 70 cities tracked, a whopping 63 saw prices go down that month alone.

Tier-one spots like Beijing held up a little better with secondary homes down 3.2 percent year over year, but smaller tier-three cities got hit harder at 5.7 percent. Why's this mattering so much? China's property world used to be the engine of growth, pulling in jobs and cash. But since 2021, big builders have stumbled.

September and October are prime buying months, yet buyers stayed away. That sour mood is cutting into spending on everything from groceries to gadgets. Plus, last week's reports showed the economy grew slower in the third quarter, partly because of this housing drag.

It's a reminder that even in a powerhouse like China, home isn't just bricks—it's security. If this continues, expect further adjustments from Beijing to stabilize the situation.

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