China’s most influential cities are leading the charge in the country’s effort to stabilize its massive real estate sector. February’s data shows that Beijing and Shanghai have effectively halted their price slides, with both cities seeing a 0.2 percent rise in new home costs. This regional strength helped the overall first-tier category achieve a month-on-month price stability of 0.0 percent.
While Beijing and Shanghai prospered, the southern giants of Guangzhou and Shenzhen showed a more mixed result. Guangzhou’s new home prices remained flat, but Shenzhen recorded a 0.3 percent drop. This disparity suggests that the recovery is closely tied to local economic factors and the specific “city-specific” policies mentioned in the government’s latest work report.
The secondary market provided even more evidence of a “narrowing decline.” The 0.1 percent drop in first-tier second-hand home prices was a vast improvement over January’s 0.5 percent decline. With Beijing’s resold prices rising 0.3 percent, it is clear that certain segments of the market are already entering a recovery phase, even while the national average remains slightly negative.
Year-on-year figures remain the most sober part of the report. The 7.6 percent drop in first-tier resold home prices compared to last year illustrates the depth of the correction. Similarly, third-tier cities saw their annual new home price declines widen to 4 percent. These numbers indicate that while the “monthly” stabilization is real, the market is still much lower than its historical peaks.
The 2026 government work report sets a vision for a “modernized” real estate market. The plan involves promoting homes that are not only safe and comfortable but also “eco-friendly and smart.” By focusing on the quality of life for families with children, the government hopes to transition the property market into a sustainable component of the 15th Five-Year Plan’s “smart economy.”