China's 100-city new residential property prices rose for the month in July 2026, according to data released by the China Index Academy, extending a gradual recovery trend in the world's largest housing market amid continued policy support.
Price Performance Across Tiers
The average price of new homes across 100 monitored cities rose 0.26% month-on-month in July, with first-tier cities outperforming at a 0.63% monthly increase, the strongest driver of overall market recovery. The year-on-year comparison showed a more robust 2.09% gain, signaling improving buyer confidence in key urban markets.
Second-tier cities showed mixed performance, with some coastal markets tracking closely with first-tier momentum while inland cities continued to face inventory pressure. Third-tier cities remained the weakest segment, with price declines in several northeastern and western markets.
Policy Support Sustains Recovery
The improvement comes as Beijing has intensified its policy support for the housing market. The July 30 Politburo meeting pledged to "stabilize the real estate market," and the State Council approved an amendment to the housing provident fund regulations that broadens the scope for withdrawals to include home decoration and property management fees, reducing the cost burden on prospective buyers.
Analysts at China Index Academy noted that "good housing" projects in core cities continue to attract strong buyer interest, with premium land auctions maintaining high participation from state-backed developers.
Outlook for H2
Looking ahead, the persistence of favorable policies, improving transaction volumes, and pent-up demand are expected to sustain the recovery trajectory. However, market segmentation is expected to deepen, with quality properties in prime locations continuing to outperform the broader market.