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This report is from this week’s CNBC’s The China Connection newsletter, which brings you insights and analysis on what’s driving the world’s second-largest economy. Each week, we’ll explore the biggest business stories in China, give a lowdown on market moves and help you set up for the week ahead. Like what you see? You can subscribe here.
Falling real estate prices are the elephant in the room when it comes to China’s economy.
From June 2023 to June 2025, the average price per square meter for secondhand apartments in 100 major cities fell by 13%, according to CNBC’s calculations of data published last week by China Index Academy, a research firm. Beijing and Shanghai saw similar double-digit price drops.
It’s a bitter pill to swallow for homeowners hoping to reap a profit. The past decades of skyrocketing property prices saw many in China splurge on new properties before they were even built or completed, which fueled a speculative bubble — followed by the high-profile defaults of Evergrande and other developers.
