S&P Global Ratings lowers 2026 forecast for China property sales, predicting a 10-14% drop in primary real estate sales due to overbuilding and declining consumer demand. Analysts warn of a further 2-4% price decline this year, exacerbating the market’s woes.

China’s property market saw annual sales volume halve in four years, with a sixth-straight year of completed, unsold new housing. Falling prices erode homebuyer confidence, hindering a property market recovery. Major cities like Beijing, Guangzhou, and Shenzhen reported home price declines, worsening the overall market conditions.

China’s property slump worsened throughout 2025, with sales falling by 12.6% to $1.21 trillion. Pressure mounts on struggling real estate developers, with potential downward rating pressure on four out of ten Chinese developers. Chinese authorities focus on developing advanced technologies amid the property market challenges.

Chinese authorities prioritize developing advanced technologies over providing significant support for the real estate sector. Rhodium Group warns that China’s high-tech push may not be enough to offset the property slump, leaving the economy reliant on exports and exposed to trade tensions. Economic goals for the year will be released at an upcoming parliamentary meeting.

Read more at CNBC: China’s property slump will be worse than expected