Trade war with U.S. speeds up China’s real estate downturn

Trade war with U.S. speeds up China’s real estate downturn

Posted on May 27, 2025 |

China’s home prices dropped more sharply in April, highlighting ongoing challenges in the property market.

New-home prices in 70 major cities (excluding subsidized housing) fell 0.12% from March, a faster decline than the 0.08% drop in the previous month.

Used home prices saw a steeper monthly fall of 0.41%, up from 0.23% in March, according to the National Bureau of Statistics.

The ongoing U.S.-China tariff war is worsening the housing slowdown, threatening broader economic growth.

A recent tariff truce offered temporary relief, but trade disruptions still risk weakening housing demand in China’s export-heavy economy.

Year-on-year, the decline in new-home prices eased slightly to 4.55%, down from March’s 4.99% drop.

Existing home prices also saw a slower annual decline, falling 6.76% versus 7.25% in March.

In response, Chinese officials are signaling a cautious approach to defending growth, with plans to prepare emergency measures against rising external pressures.

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