In October, new home prices in China fell at their fastest pace in 12 months, another sign of a deepening crisis in Asia's largest economy. China's property market continues to lose momentum amid shrinking populations in small cities, a glut of secondary housing and growing distrust among buyers, according to a Reuters analysis of data from China's National Bureau of Statistics.

October's price decline was 0.5% month-on-month, the biggest decline since October 2024. In comparison, September's decline was 0.4%. Year-on-year, the trend also remains negative: prices fell 2.2%, matching the pace of decline in the previous month.

It is particularly telling that the decline is occurring in September and October, traditionally peak months for property sales. The decline underscores the serious challenges facing the Chinese government as it tries to keep the sector from further decline. Since the initial shocks of 2021, the market has been plagued by weak demand and limited liquidity, which has hampered the recovery of the industry.

Experts say that stabilizing the real estate market could drive household consumption and reduce the Chinese economy’s overreliance on public investment and exports. However, despite previous government moves, China has yet to implement large-scale stimulus measures to revive the sector in 2025.

Analysts say the main reasons for the decline include demographic decline in smaller cities, a backlog of secondary housing stock, and a general loss of confidence in developers. A survey by the China Index Academy found that confidence in purchasing a home remains particularly low in smaller cities. The secondary real estate segment shows a systemic decline: in 70 cities that participated in the study, prices are decreasing both annually and monthly.

For comparison, in Ukraine in October 2025 the situation on the new construction market looks more stable. The share of active sales departments remained at the level of previous months, and prices in many regions continue to grow. The largest price increase was recorded in Vinnytsia and Zhytomyr regions, while demand is generally decreasing - with the exception of western regions, where buyer interest remains high.