China new home price continued to drop in December 2025.

"The Chinese real estate market is facing a significant downturn, as evidenced by the continuing decline in both new and used home prices. This situation reflects a broader weakness in the housing sector, where declining prices discourage consumers from making purchases amid expectations of further falls. While the government aims to maintain GDP growth around 5%, actual nominal growth remains sluggish, raising concerns about the economic outlook. Retail sales and investment continue to struggle, compounded by deflationary pressures that negatively affect consumer sentiment. Moreover, the People's Bank of China's cautious monetary policy reflects reluctance to initiate large-scale stimulus measures. Overall, China's economy appears to be supported primarily by exports, and without improvements in domestic demand, these challenges are likely to persist."