China Home Prices Forecast to Fall 4 Percent in 2026

China home prices are forecast to drop 4.0% in 2026 before stabilizing in 2027. Analysts say high inventory and low demand continue to weigh on the market.

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Residential property prices in China are projected to experience a sharper decline than previously anticipated before reaching a point of stabilization in 2027. According to a quarterly Reuters poll conducted between March 2 and 12, home prices are now expected to drop by 4.0% in 2026, a more significant contraction than the 2.8% decrease forecasted in the previous survey. The poll suggests that prices will remain flat in 2027, maintaining the earlier outlook, with a modest recovery of 0.5% expected in 2028. This prolonged downturn continues to impact the broader economy, eroding household wealth and dampening consumption across the nation.

A residential building in Huizhou, Guangdong province, displays a for-sale sign as the property market faces ongoing challenges. REUTERS/Nicoco Chan
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