New Homes Hold Up, Secondary Market Slides
China's 100-city housing market showed a clear divergence in July 2026, with new home prices rising modestly while secondary home prices extended their decline, according to data released by the China Index Academy (中指研究院) on August 1. The average new home price across 100 cities stood at 17,229 yuan per square metre, up 0.26% month-on-month and 2.09% year-on-year, signalling structural strength in the primary market. In contrast, the average secondary home price fell to 12,584 yuan per sq m, down 0.44% month-on-month — a slight widening of the decline compared with June's 0.42% drop.
Eight Rising, 92 Falling
A striking detail from the July data: only 8 out of 100 cities recorded month-on-month price increases in the secondary market, while 92 cities saw price reductions. This broad-based softening underscores that while premium new developments in core cities are holding their value, the broader resale market remains under pressure. Shanghai stood out as the only first-tier city where both new and secondary home prices rose simultaneously in July, with new home prices climbing 0.96% month-on-month — the sharpest among all cities surveyed.
Tier-1 Cities Lead the Primary Market
| City Tier | New Home Price MoM Change |
|---|---|
| First-tier cities | +0.63% |
| Second-tier cities | +0.14% |
| Third- and fourth-tier cities | −0.07% |
Dalian (+0.53%) and Lanzhou (+0.46%) also recorded notable new home price increases in July, while Yangzhou (−2.13%), Jinhua (−1.40%) and Taizhou (−1.04%) saw the sharpest secondary market declines. The data reinforces an ongoing polarisation in China's property market: high-quality new projects in economically vibrant cities continue to attract buyers, while smaller cities and the secondary market face persistent inventory and pricing headwinds.
Policy Backdrop and Outlook
The divergence between new and secondary home prices reflects both supply-side dynamics — developers in core cities are launching premium projects — and demand-side patterns, with buyers gravitating toward new inventory amid ongoing policy support. As of July 2026, government stimulus measures including lower mortgage rates and reduced down-payment requirements remain in place, though the broader market continues to search for a durable bottom.