In 2023, the average price of real estate in China was approximately 10,438 yuan per square meter, representing a decrease from the previous year. Rising prices in the real estate market Since the 1998 housing reform, property prices in China have been rising continuously. Housing in the country is now often unaffordable, especially considering the modest per capita income of Chinese households. Shanghai and Beijing even have some of the most competitive real estate markets in the world. The rapid growth in housing prices has increased wealth among homeowners, while it also led to a culture of speculation among buyers and real estate developers. Housing was treated as investments, with owners expecting the prices to grow further every year. Risk factors The expectation of a steadily growing real estate market has created a property bubble and a potential debt crisis. As Chinese real estate giants, such as China Evergrande and Country Garden, operate by continuously acquiring land plots and initiating new projects, which often require substantial loans and investments, a slowdown in property demands or a decline in home prices can significantly affect the financial situation of these companies, putting China’s banks in a vulnerable position. In addition, due to a lack of regulations and monetary constraints, the long-term maintenance issues of high-rise apartments are also a concern to the sustainable development of China’s cities.

Despite a slowdown in the country's economy, property prices remained relatively high across China in 2023. In Shanghai, the average prices for residential housing exceeded RMB 40,000 per square meter, making the metropolis one of the most expensive cities to live in globally. Meanwhile, many less developed regions, such as the provinces of Guizhou, Gansu, and Guangxi, had average housing prices below RMB 6,000 per square meter. High property prices in major cities The commodification of real estate in the 1990s led to a rapid rise in property prices across China over the last three decades. Between 1998 and 2023, average property prices in China rose more than four times to more than 10,000 RMB per square meter. The cost of housing in core areas of major urban centers such as Shenzhen, Shanghai, and Beijing can often reach unaffordable levels, even for the middle class. Key drivers behind the housing price rise Due to the regional disparities in the country, China's rapid urbanization resulted in a high influx of internal migrants into its eastern cities, resulting in a short housing supply across many regions. At the same time, due to China's unique land and tax system, local governments are often highly dependent on land transfer revenues for their finances. As a result, many regional authorities tend to restrict the supply of available land in the market, further exacerbating property price rises across the country.

In 2022, the average price for residential real estate in Shenzhen was over 55.700 thousand yuan per square meter. This was the highest price among all major cities in China, with the average price across the country amounting to 17,359 yuan per square meter. A pillar of the Chinese economy China gradually abolished its welfare housing allocation system and liberalized its real estate market in the 1990s. In 2003, the government declared the real estate sector as one of the pillars of the Chinese economy. Thanks to the country's rapid economic development and urbanization, China's real estate market expanded significantly in the last two decades, with the sector accounting for about seven percent of China's GDP in 2022. Unaffordable in major urban centers While the real estate industry greatly contributed to the growth of China's economy, the housing market boom also created social issues and financial risks. In comparison to household income, property prices in major cities, most notably Shanghai, Beijing, Guangzhou, and Shenzhen, are extraordinarily expensive for average citizens. Soaring housing prices have also led to a rapid division of wealth between homeowners and renters. At the same time, debt problems created by the rapid expansion of real estate companies and the high levels of debt accumulated by Chinese citizens have created serious potential hazards for China's financial system.

Key information about House Prices Growth

• China house prices dropped 4.1% YoY in Dec 2024, following a decrease of 4.8% YoY in the previous month.
• YoY growth data is updated monthly, available from Mar 1999 to Dec 2024, with an average growth rate of 7.4%.
• House price data reached an all-time high of 25.0% in Feb 2010 and a record low of -12.6% in Apr 1999.

CEIC calculates House Prices Growth from monthly Average Residential Property Price per Square Meter. The National Bureau of Statistics provides year-to-date Average Residential Property Price per Square Meter in local currency.

Property Price: YTD Avg: Beijing data was reported at 31,975.587 RMB/sq m in Dec 2024. This records a decrease from the previous number of 32,227.942 RMB/sq m for Nov 2024. Property Price: YTD Avg: Beijing data is updated monthly, averaging 19,329.232 RMB/sq m from Jan 2003 (Median) to Dec 2024, with 264 observations. The data reached an all-time high of 42,343.603 RMB/sq m in Jun 2021 and a record low of 4,515.769 RMB/sq m in Feb 2004. Property Price: YTD Avg: Beijing data remains active status in CEIC and is reported by National Bureau of Statistics. The data is categorized under China Premium Database’s Price – Table CN.PD: NBS: Property Price: Monthly.

Property Price: Guangdong: Zhongshan data was reported at 11,099.949 RMB/sq m in 2022. This records a decrease from the previous number of 12,259.557 RMB/sq m for 2021. Property Price: Guangdong: Zhongshan data is updated yearly, averaging 5,883.633 RMB/sq m from Dec 2002 (Median) to 2022, with 21 observations. The data reached an all-time high of 12,259.557 RMB/sq m in 2021 and a record low of 1,186.000 RMB/sq m in 2002. Property Price: Guangdong: Zhongshan data remains active status in CEIC and is reported by Zhongshan Municipal Bureau of Statistics. The data is categorized under China Premium Database’s Price – Table CN.PE: Property Price: Prefecture Level City.

House Price Index MoM in China decreased to -0.10 percent in February from 0 percent in January of 2025. This dataset includes a chart with historical data for China House Price Index MoM.

The statistic shows the average real estate sale price of residential real estate in China between 2013 and 2023. In 2023, one square meter of real estate in China cost, on average 10,864 yuan.

In 2022, the price for new residential property in Shanghai's inner ring dropped by more than 4,000 yuan per square meter, to 119,244 thousand yuan per square meter. Although the local authorities introduced policies to stabilize the market, the real estate market in Shanghai’s central districts remained under downward pressure, similar to those experienced by other major cities in China.

The most competitive real estate market in the country

Home prices in Shanghai are among the most expensive globally. The area within the city's inner ring road is certainly one of the most competitive real estate markets in all of China, with property prices nearly three times higher than those outside the outer ring road. Rising prices are far beyond the reach of ordinary residents, and the few who can afford to buy often have to take out substantial mortgages for their homes, resulting in a high proportion of real estate in their personal assets.

Challenges facing China’s real estate sector

The high level of indebtedness of the Chinese people and the bubbles in the country's real estate sector have become one of the major risks to China's economy. While developers expanded through continuous borrowing and the sale of off-plan properties to homebuyers, the market saw a significant excess of housing supply in most regions. There have also been instances in recent years where developers have had difficulties in completing construction projects or in repaying their loans or bonds. Addressing the risks in China's real estate sector, particularly in companies such as the Evergrande Group and Country Garden, has become an urgent task to ensure China's economic stability and prosperity.

Property Price: YTD Avg: Commercial Bldg: Tianjin data was reported at 16,923.412 RMB/sq m in Dec 2019. This records an increase from the previous number of 16,795.006 RMB/sq m for Nov 2019. Property Price: YTD Avg: Commercial Bldg: Tianjin data is updated monthly, averaging 13,107.429 RMB/sq m from Jan 2006 (Median) to Dec 2019, with 167 observations. The data reached an all-time high of 23,698.653 RMB/sq m in Feb 2017 and a record low of 5,148.000 RMB/sq m in Feb 2007. Property Price: YTD Avg: Commercial Bldg: Tianjin data remains active status in CEIC and is reported by National Bureau of Statistics. The data is categorized under China Premium Database’s Price – Table CN.PD: NBS: Property Price: Commercial Building: Monthly.

In 2021, the average price of residential housing sold in Shanghai, the most important economic hub of China, surpassed 37,400 yuan per square meter, making the city one of the least affordable cities in the country. The housing market boom Since the housing reform in the 1990s, the prices of homes in Shanghai have increased almost every year, thanks to the growth of the city’s population and, thus, the high demands in the housing market. The high property prices gradually became out of reach for most residents, who earn an annual per capita income of only 172,000 yuan. Residential properties in the city center were especially unaffordable, as newly built homes located within Shanghai's inner ring road had an average price of 123,590 yuan in 2021, three times more expensive than their counterparts outside the outer ring road. Risks and interventions The high price not only made living in the city expensive for its residents, but also posed a grave risk to China’s financial system. In the first 20 years of this century, the total value of personal housing mortgage loans in Shanghai increased by more than 20 times, and defaults of any moderate scale can be consequential. Therefore, both the central and the municipal authorities had been attempting to curb the continuous rise of property costs in Shanghai, through the increase in the supply of housing stocks and policies limiting speculations in the market. However, most measures were not as effective as anticipated.

China Property Price: YTD Avg: Existing House: Overall data was reported at 8,080.162 RMB/sq m in Dec 2024. This records an increase from the previous number of 8,060.872 RMB/sq m for Nov 2024. China Property Price: YTD Avg: Existing House: Overall data is updated monthly, averaging 6,250.728 RMB/sq m from Jan 2006 (Median) to Dec 2024, with 228 observations. The data reached an all-time high of 10,695.904 RMB/sq m in Feb 2021 and a record low of 2,756.000 RMB/sq m in Dec 2006. China Property Price: YTD Avg: Existing House: Overall data remains active status in CEIC and is reported by National Bureau of Statistics. The data is categorized under China Premium Database’s Price – Table CN.PD: NBS: Property Price: Monthly.

In 2023, the average cost of office properties in China amounted to almost 14 thousand yuan per square meter. The price increased steeply since 2003 when the average price was below 4,200 yuan per square meter. However, the price rises in office properties did not match the dramatic development of the residential housing market, where average prices increased around 400 percent since 2000.

Property Price: Residential: Guangdong: Zhuhai data was reported at 21,650.577 RMB/sq m in 2022. This records a decrease from the previous number of 25,717.155 RMB/sq m for 2021. Property Price: Residential: Guangdong: Zhuhai data is updated yearly, averaging 11,760.694 RMB/sq m from Dec 2005 (Median) to 2022, with 18 observations. The data reached an all-time high of 25,717.155 RMB/sq m in 2021 and a record low of 3,779.812 RMB/sq m in 2005. Property Price: Residential: Guangdong: Zhuhai data remains active status in CEIC and is reported by Zhuhai Municipal Bureau of Statistics. The data is categorized under China Premium Database’s Price – Table CN.PE: Property Price: Residential: Prefecture Level City.

Property Price: Residential: Beijing data was reported at 38,673.191 RMB/sq m in 2024. This records a decrease from the previous number of 46,554.064 RMB/sq m for 2023. Property Price: Residential: Beijing data is updated yearly, averaging 13,224.309 RMB/sq m from Dec 1993 (Median) to 2024, with 31 observations. The data reached an all-time high of 47,784.106 RMB/sq m in 2022 and a record low of 2,255.000 RMB/sq m in 1993. Property Price: Residential: Beijing data remains active status in CEIC and is reported by Beijing Municipal Bureau of Statistics. The data is categorized under China Premium Database’s Price – Table CN.PE: Property Price: Residential: Prefecture Level City.

The average purchase price of a property by Chinese buyers in the United States increased by more than 100 percent between 2010 and 2024. In 2024, Chinese buyers paid, on average, over 1.3 million U.S. dollars for American properties. With a total of 7.5 billion U.S. dollars, China was the largest foreign buyer of residential real estate in the U.S.

Property Price: Henan: Zhengzhou data was reported at 8,618.752 RMB/sq m in 2023. This records an increase from the previous number of 7,879.385 RMB/sq m for 2022. Property Price: Henan: Zhengzhou data is updated yearly, averaging 5,974.633 RMB/sq m from Dec 2000 (Median) to 2023, with 24 observations. The data reached an all-time high of 9,833.940 RMB/sq m in 2020 and a record low of 1,917.672 RMB/sq m in 2000. Property Price: Henan: Zhengzhou data remains active status in CEIC and is reported by Zhengzhou Municipal Bureau of Statistics. The data is categorized under China Premium Database’s Price – Table CN.PE: Property Price: Prefecture Level City.

Property Price: Guangdong: Foshan data was reported at 14,838.368 RMB/sq m in 2022. This records an increase from the previous number of 14,792.453 RMB/sq m for 2021. Property Price: Guangdong: Foshan data is updated yearly, averaging 8,056.321 RMB/sq m from Dec 2002 (Median) to 2022, with 21 observations. The data reached an all-time high of 14,838.368 RMB/sq m in 2022 and a record low of 923.000 RMB/sq m in 2002. Property Price: Guangdong: Foshan data remains active status in CEIC and is reported by Foshan Municipal Bureau of Statistics. The data is categorized under China Premium Database’s Price – Table CN.PE: Property Price: Prefecture Level City.

Qingdao: Property Price: Year to Date Avg data was reported at 13,604.220 RMB/sq m in Nov 2024. This records an increase from the previous number of 13,528.560 RMB/sq m for Oct 2024. Qingdao: Property Price: Year to Date Avg data is updated monthly, averaging 8,551.240 RMB/sq m from Feb 2006 (Median) to Nov 2024, with 207 observations. The data reached an all-time high of 15,761.080 RMB/sq m in Feb 2020 and a record low of 3,581.000 RMB/sq m in Feb 2007. Qingdao: Property Price: Year to Date Avg data remains active status in CEIC and is reported by Qingdao Municipal Bureau of Statistics. The data is categorized under China Premium Database’s Real Estate Sector – Table CN.RK: Shandong: Qingdao Property.

In 2023, the average cost for properties for business purposes in China dropped slightly, to 10,422 yuan per square meter. The market saw steep price rises until around 2013 when the prices were generally stabilized. Business properties can be immensely expensive in China's major cities, especially in economic hubs like Beijing and Shanghai.