China's national housing market showed renewed vigor in July 2026, with 94.3% of the country's 70 major cities recording month-on-month increases in new residential property prices, according to the latest official data — the highest proportion of rising cities in recent years and a signal that the market recovery is broadening beyond a handful of leading cities.
Shanghai Leads with 0.96% Monthly Gain
Among all cities, Shanghai recorded the strongest new home price appreciation, with a 0.96% month-on-month increase — the highest single-month gain among first-tier cities and the most significant nationwide. Dalian (+0.53%), Lanzhou (+0.46%), Chengdu (+0.44%), and Shenzhen (+0.43%) followed in the rankings. The nation's 100-city average new home price reached 17,229 yuan per square meter, up 0.26% month-on-month and 2.09% year-on-year.
Shanghai's outperformance was attributed to a combination of strong underlying demand, a scarcity of premium new supply, and robust buyer confidence fueled by successive rounds of policy support. The city's new home sample average price stood at 64,712 yuan per square meter, by far the highest among all monitored cities.
Quality Projects Drive Structural Gains
Analysts noted that the price recovery remains concentrated in quality developments in prime locations, with "good housing" projects — a policy-driven classification emphasizing space standards, green building features, and smart technology — consistently outperforming the broader market. The concentration of gains in top-tier and select second-tier cities reflects a structural rather than uniform market recovery.
Secondary Market Divergence
While new home prices showed broad-based strength, the secondary market remained more subdued. Among 100 monitored cities, the average secondary home price fell 0.44% month-on-month in July, with 92 cities recording declines and only 8 cities posting gains. Notably, Shanghai was one of the few cities to record concurrent increases in both new and secondary home prices, highlighting its unique market position.
Policy Backdrop
The latest price data comes as Beijing has pledged to maintain supportive housing policies through the second half of 2026, with the July 30 Politburo meeting emphasizing "stable development of the real estate market" as a key policy priority. The convergence of supportive policy, improving transaction volumes, and pent-up demand is expected to sustain the positive momentum in prime city new home markets through year-end.