China Property Investment Drops 10.3% Amid Prolonged Real Estate Slump

China's property sector continues to decline, with property investment falling 10.3% year-on-year in the first four months of 2025, deepening from a 9.9% drop in the first quarter, according to official data released Monday. The figures reflect ongoing stress in the real estate market, a key pillar of the world's second-largest economy.

Property sales by floor area decreased 2.8% between January and April compared to the same period in 2024, slightly easing from a 3.0% contraction in the first quarter. Meanwhile, new construction starts measured by floor area plunged 23.8%, marginally better than the 24.4% decline seen in Q1, but still highlighting weak developer confidence and sluggish project pipelines.

Funding conditions for developers also remained tight. Funds raised by real estate firms dropped 4.1% in the January-April period, following a 3.7% fall in the first three months of the year. The persistent decline in financing points to continued liquidity pressures, limiting developers’ ability to initiate or complete projects.

The Chinese government has introduced various stimulus measures to stabilize the housing market, but recovery has been slow due to waning buyer confidence and oversupply in some regions. The latest data underscores the challenges Beijing faces in revitalizing the property sector, which has broad implications for domestic growth and financial stability.

As China grapples with broader economic headwinds, including slowing industrial output and weak consumer demand, the ongoing real estate downturn poses significant risks. Investors and policymakers alike will be closely monitoring further indicators for signs of stabilization or deeper structural issues within the sector.