China’s real estate development investment fell -14.7% YoY in Jan–Oct 2025, with residential investment down -13.8% YoY, reflecting continued broad-based contraction across construction, sales, and developer financing.

• Total housing construction area declined -9.4% YoY to 6.53B sq m, while residential construction fell -9.7% YoY, showing sustained weakness in ongoing projects.

• New housing starts dropped -19.8% YoY (residential -19.3% YoY), and completions fell -16.9% YoY (residential -18.9% YoY), underscoring persistent softness across both project initiation and delivery.

• New commercial housing sales area decreased -6.8% YoY, with sales value down -9.6% YoY; residential sales fell -7.0% by area and -9.4% by value, indicating weaker demand alongside falling prices.

• Commercial housing inventory stood at 756.06M sq m at end-October, down 3.22M sq m MoM, with residential inventory lower by 2.92M sq m, signaling only marginal improvement in absorption.

• Developer funding fell -9.7% YoY to ¥7.89T, driven by declines in self-raised funds (-10.0%), deposits and advance receipts (-12.0%), and personal mortgage loans (-12.8%), while domestic loans eased only -1.8% YoY.

• Foreign capital usage dropped -37.5% YoY, reflecting significantly reduced external financing availability for developers.

• The national housing prosperity index registered 92.43 in October, remaining well below the neutral threshold and indicating continued weak sector sentiment.