New home prices in China's four first-tier cities were flat on average in July 2026 compared to June, ending a four-month recovery, according to one report. Shanghai and Shenzhen saw a modest 0.2% month-on-month rise, Guangzhou gained 0.1%, while Beijing declined 0.3% in July 2026 [1]. Another source recorded a slight 0.1% month-on-month decline in first-tier city prices, marking the end of the rebound [2].

Nationally, new home prices fell 0.1% month-on-month in July 2026, matching the same drop recorded in June [3]. Second-tier cities reversed June’s stable reading, posting a 0.1% decline in new home prices month-on-month [1]. According to one report, 23 out of 70 large and medium-sized cities experienced flat or increased new home prices in July 2026, two more than in June [1]. However, another source noted only 17 cities recorded price increases month-on-month [3].

On a year-on-year basis, new home prices in first-tier cities dropped 1.1% in July 2026, narrowing the annual decline from June [1, 2]. Nationally, new home prices fell 3.2% year-on-year, slightly less than the 3.3% decline in June [3]. Secondhand home prices fell across most cities, decreasing 3.7% in first-tier, 5.1% in second-tier, and 5.8% in third-tier cities year-on-year in July 2026 [2].

Yan Yuejin, vice-president of E-house China Research and Development Institute, said, "While month‑on‑month new home price readings for second‑tier cities were close to halting their fall, the latest data show marginally deeper declines, pointing to more pressing needs to stabilise their housing markets" [1]. Zhang Dawei, analyst at Centaline Property, added, "Looking ahead, this tiered divergence in the property market is likely to persist. On the policy front, local governments are expected to continue tailoring measures to local conditions, with major cities focusing on unlocking demand from home upgraders and lower-tier cities prioritising efforts to reduce housing inventories" [3].

The prolonged slump in the housing sector continues to weigh on China's household confidence and broader economic growth prospects [3, 2]. Secondhand home prices declined year-on-year in all city tiers, reflecting sustained weakness across the market [2].

Key data for July 2026 show Shanghai and Shenzhen new home prices rose 0.2% month-on-month, Guangzhou 0.1%, and Beijing fell 0.3% [1]. New home prices in second-tier cities fell 0.1% month-on-month, and the national year-on-year drop stood at 3.2% [1, 3].

The data from July mark a pause or slight reversal in recent improvements, with first-tier city prices no longer rising on a monthly basis [1, 2]. Monitoring government policy responses and market trends will be critical as the sector seeks stability amid ongoing challenges.