ECONOMY

China’s Housing Construction Slumps to Lowest Level in Two Decades

Published: Dec. 17, 2025 3:21 a.m. GMT+8

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A residential property under construction in Beijing on Dec. 1, 2025. Photo: Jiang Qiming/China News Service/VCG

China’s new housing construction has slowed to its lowest level in more than two decades, signaling a decisive end to the country’s long expansion-driven property boom.

Data released by the National Bureau of Statistics on Monday showed that nationwide residential housing starts fell 19.9% year-on-year in the first 11 months of 2025 to 392 million square meters, while new home sales dropped 8.1% to 658 million square meters.

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China’s new housing starts fell 19.9% year-on-year in the first 11 months of 2025 to 392 million sqm, the lowest level since at least 2000.
The starts-to-sales ratio fell to 59.5%, with annual starts estimated 74% below the 2019 peak, while home sales decreased more slowly.
The property sector has shifted focus from expansion to reducing inventory, with average sell-through periods rising to 27.4 months.

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Who’s Who

GF Securities: Guo Zhen, chief property analyst at GF Securities, noted that China's per-capita housing construction accelerated in 15 years what took other economies 25-30 years. He suggested the current property market downturn is a correction from this intense development. Guo estimated China's long-term equilibrium for annual new home transactions at 800-850 million square meters.

E-House China Research and Development Institute: The E-House China Research and Development Institute, located in Shanghai, reported that in November, the average new home sell-through period in 100 Chinese cities had extended to 27.4 months. This figure significantly exceeds the healthy range of 12 to 14 months, indicating a substantial inventory backlog in China's property market.

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What Happened When

2019：: Residential construction peaked with new housing starts hitting a record 1.675 billion square meters, exceeding sales of 1.501 billion square meters.

August 2020：: The government introduced the 'three red lines' policy, tightening financing for developers.

2021：: Home sales reached a historic high; residential starts fell 11% that year, with the starts-to-sales ratio dropping to 93.5%.

2022：: Residential starts plunged nearly 40% year-on-year to 881 million square meters, and the ratio dropped to 76.9%.

As of November 2025：: The average sell-through period for new homes in 100 Chinese cities rose to 27.4 months, according to the E-House China Research and Development Institute.

December 15, 2025：: The National Bureau of Statistics released data showing that nationwide residential housing starts fell 19.9% year-on-year in the first 11 months of 2025 to 392 million square meters, and home sales dropped 8.1% to 658 million square meters.

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