China's Tier-1 Resale Home Prices Turn Positive in March, Signaling Policy Easing Gains Traction

In March 2026, existing-home prices in China's major first-tier cities turned positive for the first time in months, suggesting the housing market may be starting to stabilize.

This positive shift is seen as the result of cumulative government easing policies, such as lower mortgage rates and relaxed purchasing restrictions, which are now showing tangible effects.

While this is a promising sign for core city markets, the national new-home price index remains negative, indicating that a full-scale recovery is still in its early stages.

The latest housing data from China signals that the government's long-running efforts to stabilize the property market are finally beginning to bear fruit.

The most significant development comes from the March 2026 price report, which showed existing-home (or resale) prices in first-tier cities like Beijing and Shanghai rising by 0.40% month-on-month. This is a notable turnaround from the previous month's decline. The resale market is a critical indicator because it reflects actual transaction activity and market liquidity more accurately than the new-home market. While national new-home prices are still down year-over-year, this positive shift in core cities suggests a bottom may be forming.

This recovery isn't accidental; it's the result of a multi-layered policy push over many months. First, recent and targeted measures have been crucial. For instance, Shanghai's decision in February 2026 to ease residency rules for homebuyers and pilot programs to purchase existing homes for affordable rentals directly expanded the pool of eligible buyers and supported prices. Second, broader monetary easing has played a key role. The People's Bank of China (PBOC) has cut key policy rates and maintained a moderately loose stance, which gradually lowered mortgage costs for homebuyers. Third, these actions build on a foundation laid much earlier. Measures from as far back as May 2024, such as removing the national floor on mortgage rates and expanding 'white-list' financing for developers, were designed to restore affordability and confidence over the long term.

For a while, the narrative was that these policy measures were insufficient to counter the deep-seated downturn. However, the March data has shifted this perspective. The turnaround in the resale market suggests that the policy transmission channels—from lower rates to actual buyer activity—are finally working. The cumulative effect of lower down payments, wider eligibility, and improved liquidity for sellers is now becoming visible in the price data of the most important urban centers.

In conclusion, while the Chinese property market's stabilization is still fragile and confined mainly to top-tier cities, the positive momentum in the resale market is a clear and important signal. It suggests that the government's persistent and targeted easing strategy is gaining traction where it matters most, providing a tentative but welcome sign of recovery.

First-tier Cities: Refers to China's largest and most economically significant cities, typically including Beijing, Shanghai, Guangzhou, and Shenzhen. They often lead national market trends.
White-list Financing: A government program that identifies and provides targeted financial support to selected property development projects deemed financially sound, aiming to ensure their completion and prevent defaults.
LPR (Loan Prime Rate): The benchmark lending rate set by Chinese banks, which serves as a reference for new loans, including mortgages. Cuts to the LPR are a key tool for monetary easing.

China's Tier-1 Resale Home Prices Turn Positive in March, Signaling Policy Easing Gains Traction

In March 2026, existing-home prices in China's major first-tier cities turned positive for the first time in months, suggesting the housing market may be starting to stabilize.

This positive shift is seen as the result of cumulative government easing policies, such as lower mortgage rates and relaxed purchasing restrictions, which are now showing tangible effects.

While this is a promising sign for core city markets, the national new-home price index remains negative, indicating that a full-scale recovery is still in its early stages.

The latest housing data from China signals that the government's long-running efforts to stabilize the property market are finally beginning to bear fruit.

First-tier Cities: Refers to China's largest and most economically significant cities, typically including Beijing, Shanghai, Guangzhou, and Shenzhen. They often lead national market trends.
White-list Financing: A government program that identifies and provides targeted financial support to selected property development projects deemed financially sound, aiming to ensure their completion and prevent defaults.
LPR (Loan Prime Rate): The benchmark lending rate set by Chinese banks, which serves as a reference for new loans, including mortgages. Cuts to the LPR are a key tool for monetary easing.