The first six months of 2025 saw sustained sluggishness in China’s real estate market. Data from the National Bureau of Statistics indicates that from January to June, total national real estate development investment reached CNY4.67 trillion , an 11.2% decrease from the same period last year. This decline was more severe than the market’s expectation of a 10.9% fall. Investment in residential properties also painted a grim picture, totaling CNY3.58 trillion, down 10.4% year-on-year.
Looking at specific indicators, the floor area of buildings under construction by real estate enterprises decreased by 9.1% year-on-year, reaching 6.33 billion square meters. The sales front showed weakness, with the sales area of new commercial properties declining by 3.5%. Within this, residential sales area saw a 3.7% drop. In terms of sales value, overall commercial property sales fell by 5.5%, while residential sales value slid by 5.2%.
Financially, funds available to development enterprises totaled CNY5.02 trillion, a 6.2% year-on-year decrease. Breaking this down, domestic loans saw a slight increase of 0.6% to CNY824.5 billion, and foreign investment grew by 25.4% to CNY1.7 billion .
However, self-raised funds fell by 7.2% to CNY1.75 trillion, deposits and prepayments decreased by 7.5% to CNY1.48 trillion, and individual mortgage loans saw a significant 11.4% decline to CNY684.7 billion .
