BUSINESS

China’s New Home Sales Sink to 10-Year Low as Crisis Persists

Published: Jan. 21, 2026 3:35 a.m. GMT+8

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A newly built commercial housing project in Nanjing, Jiangsu province. Photo: VCG

China’s sales of new commercial property dropped to a 10-year low in 2025, with the total value of transactions halving from their 2021 peak, underscoring the prolonged turmoil in the country’s real estate sector.

New data from the National Bureau of Statistics showed the value of new commercial housing sales fell 12.6% year-on-year to 8.39 trillion yuan ($1.2 trillion), a level last seen in 2015. The continued contraction reflects a sweeping structural shift in the market, as demand has pulled back sharply from new developments.

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China’s new commercial property sales fell to a 10-year low in 2025, with sales value halved from the 2021 peak, reaching 8.39 trillion yuan and floor space sold dropping 8.7% to 881 million sqm.
Secondary market activity is more resilient; in 2025, secondhand homes made up about 65% of sales in 30 major cities.
Developers reduced new supply sharply, and projections show continued declines in new home sales and investments through 2026.

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Who’s Who

GF Securities: GF Securities is an organization for which Guo Zhen works as the chief real estate analyst. Guo Zhen's analysis on the Chinese housing market is cited in the article, highlighting that while overall demand for housing remains stable, buyer preferences have shifted.

China Index Academy: The China Index Academy provided data on January 19, 2025, showing that secondhand homes constituted approximately 65% of total sales in 30 key cities in 2025. They also reported a 12.4% decrease in land sold for residential and commercial use in 2025. Looking ahead, the academy projects a 6.2% drop in new home sales area in 2026.

AI generated, for reference only

What Happened When

2021：: Commercial property transaction value and sales area peaked in China: sales area reached 1.6 billion square meters and value topped 17 trillion yuan.

2021：: Analysts consider this year the turning point that started four consecutive years of decline in the commercial property market.

2023 to 2025：: Total transaction volume for new and pre-owned homes in China held steady at around 1.3 billion square meters annually.

2025：: China's new commercial property sales fell to a 10-year low with the transaction value halved from 2021 peak.

2025：: Value of new commercial housing sales declined 12.6% year-on-year to 8.39 trillion yuan; floor space sold declined 8.7% to 881 million square meters.

2025：: Real estate investment declined 17.2% to 8.28 trillion yuan; new construction starts plunged 20.4% to 588 million square meters; completed projects fell 18.1% to 603 million square meters.

2025：: Secondhand homes accounted for about 65% of total sales in 30 key cities, up nearly 4 percentage points from 2024.

2025：: Area of land sold for residential and commercial use fell 12.4%.

By the end of December 2025：: Area of unsold commercial property rose 1.6% year-on-year to 766 million square meters; residential inventory climbed 2.8% to 402 million square meters.