Beijing, 1 February 2026 – China’s struggling property market showed tentative signs of stabilisation in January as average new home prices in major cities rose and policymakers signalled stronger support for the sector, according to a private survey released on Sunday.
Per data from the China Index Academy, which monitors property pricing across 100 cities, new home prices climbed 0.18 % month-on-month in January, though this represented a slower pace of increase compared with December’s 0.28 % gain.
The modest uptick was driven primarily by high-end housing projects in first-tier and second-tier markets such as Chengdu, Shanghai and Hangzhou, where demand for premium residential stock remains relatively resilient. In contrast, third-tier and fourth-tier cities continued to grapple with inventory overhang, with prices in those markets still declining on both monthly and annual comparisons.
Meanwhile, resale home prices continued to fall, but at a narrower rate: resale values dropped 0.85 % in January, improving from a 0.97 % decline in December.
The latest pricing data follows renewed signals from Beijing that authorities are stepping up efforts to support the property sector after years of contraction triggered by tighter credit and regulatory scrutiny beginning in 2021. Local media reports have indicated that the government has ended the requirement for developers to submit monthly debt reports under the widely criticised “three red lines” policy, an action seen by market participants as a major easing of sectoral constraints.
On 1 January, the official Communist Party journal Qiushi characterised the housing market as undergoing a “profound adjustment,” and urged policymakers to shorten the adjustment period, reduce market volatility and follow through with decisive support measures rather than incremental steps.
Property analysts caution that sales activity may slow in February due to the Spring Festival holiday, but anticipate renewed demand in March as fresh land supply in core cities comes to market and developers intensify promotions to attract buyers.
The January price trend offers a tentative sign of recovery in China’s property sector, long a critical driver of economic growth, but analysts note that significant challenges remain, particularly in smaller cities and the broader financing environment.
