China's house prices for the year are expected to drop 4%, Reuters reported Friday, citing its quarterly survey.

The new figures are steeper than the 2.8% dip in the prior poll, the report said.

Home prices are forecasted to stay flat in 2027, but they will rise by 0.5% in 2028, the report said, citing the survey, which was conducted between March 2 and March 12.

Property investment and sales are also predicted to slump 10.3% and 6.5%, respectively, for the year, the report said.

In a December 2025 note, Fitch Ratings director Lulu Shi said the housing sector continues to face several structural challenges.

"We believe the sector still faces several structural challenges, including demographic shifts, an uncertain employment environment, low housing affordability and high stocks of unsold homes," Shi said.

Shi said ongoing government support and reduced risk from debt defaults, as well as new home sales volumes, may help slow down the decline in sales.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)