China home prices seen falling slightly less this year, property investment slump deepens: Reuters Poll

China's property market is expected to experience a modest slowdown in price declines this year, with home prices forecast to fall by 3.4% in 2026, slightly better than the previous 3.5% drop predicted in May, according to a Reuters poll. This comes amid a deepening slump in property investment and sales, with investment expected to shrink by 20% this year, compared to the 12% decline in May, and sales by floor area projected to drop by 10%, from the 8.3% fall forecast earlier.

The findings highlight the ongoing crisis in China's property sector, which has been under scrutiny since 2021 after a regulatory crackdown led to a liquidity crunch among developers. China's housing market has been in a prolonged adjustment phase, with the government focusing on containing financial risks, clearing unfinished projects, reducing excess inventory, and gradually restoring buyer confidence.

Despite some improvement in prices in major cities, economists believe a broader turnaround will take time, as price divergence persists within cities based on location and property quality rather than a general market rally.