China's Property Market Shows Signs of Cooling Price Declines

The National Bureau of Statistics reported that 49 cities faced month-over-month price drops, mirroring the tally from the previous month. On an annual basis, the decline slowed to 3.0% in September from 3.3% in August, while the number of cities reporting year-on-year decreases fell from 65 to 64. These figures signal a potential bottoming out in price volatility, even if the underlying market remains fragile.

Despite the stabilization in pricing, broader indicators highlight deep-seated structural challenges. Property investment fell 20.6% during the first nine months of the year, a steeper decline than the 19.9% drop observed through August. Simultaneously, home sales slipped 13.7% over the same nine-month period, and new construction starts contracted by 24.9%. These metrics underscore the widening gap between state efforts to hold price floors and the persistent contraction in developer activity and consumer demand.