First Monthly Price Gains in Four Months
Twenty of China's 70 major cities reported month-on-month increases in new home prices for June 2026, according to data published by the National Bureau of Statistics — the first time in four months that a majority of surveyed cities recorded price gains. The figure marks a tentative but meaningful shift in sentiment for a market that has been the single largest drag on the broader economy since 2021.
Shanghai Leads Tier-1 Recovery
Shanghai's housing market showed particularly strong momentum. Secondhand residential transactions in June exceeded 9,200 units, up sharply from the same period last year, as pent-up demand and historically low mortgage rates drew buyers back to the market. New launches in districts such as Guangming saw strong absorption rates, with one project reportedly selling out 98 percent of its units within weeks of launch.
Investment Still Declining
Despite the improvement in prices and transactions, property investment across the country fell 18 percent year-on-year in H1 2026, reflecting developers' continued caution about launching new projects amid high inventory levels and tight financing conditions. Unsold housing inventory declined for the fourth consecutive month, however, suggesting that the destocking process is gaining pace.
Policy Support Framework
The State Council's property financing 'white list' mechanism, which channels bank credit to viable developer projects, has been extended to cover five-year loan rollovers, reducing refinancing risk for cash-strapped developers. Six ministries launched a coordinated rescue package targeting inventory reduction, urban renewal, and affordable housing supply — the three pillars of the stabilisation strategy. The National Standards for 'Good Housing' launched in 2026 also aim to shift developer focus from volume to quality.