According to data from the China Real Estate Index System's 100-city price survey covering new and second-hand residential sales in 100 cities and rental markets in 50 cities, February 2026 saw a seasonal decline in market listings and transaction activity due to the Spring Festival holiday. The average price of second-hand homes across 100 cities was 12,835 yuan per square meter, down 0.54% month-on-month, with the decline narrowing by 0.31 percentage points from the previous month. Year-on-year, prices fell by 8.78%.

In the new home sector, although local governments and developers widely promoted sales events and price reductions during the holiday period, new project launches remained limited, with the focus on clearing existing inventory. The average price of new homes in 100 cities was 17,107 yuan per square meter, down 0.04% month-on-month but up 2.37% year-on-year.

In the rental market, increased short-term demand driven by holiday tourism in some cities led to an average residential rent of 33.96 yuan per square meter per month across 50 cities, down 0.11% month-on-month. The decline narrowed by 0.34 percentage points compared to January, while year-on-year rents fell by 3.79%.

In the first two months of the year, the month-on-month decline in the second-hand home price index across 100 cities narrowed significantly compared to the second half of the previous year, with the February decline shrinking to 0.54%. Reduced willingness among homeowners to list or adjust prices during the holiday period helped moderate the downward trend, though the market remains in an adjustment phase.

With the traditional spring sales season approaching after the holiday, March is expected to serve as a key observation point for market trend shifts. Price and transaction volume performance during this period will significantly influence full-year expectations.

By city tier, the month-on-month decline in second-hand home prices narrowed across all tiers. In February, first-tier cities saw a decline of 0.42%, second-tier cities fell 0.57%, and third- and fourth-tier cities dropped 0.54%. The month-on-month declines narrowed by 0.72, 0.30, and 0.19 percentage points, respectively, compared to January. Year-on-year, prices fell by 7.85%, 9.44%, and 8.51%, respectively. In terms of city count, five cities recorded month-on-month price increases, while 95 saw declines.

In the new home market, first-tier cities experienced a 0.07% month-on-month decline but a 6.51% year-on-year increase. Second-tier cities rose 0.08% month-on-month and 1.70% year-on-year, while third- and fourth-tier cities fell 0.23% month-on-month and 2.34% year-on-year. Fifteen cities recorded month-on-month price increases, 84 saw declines, and one remained unchanged.

On the policy front, on February 4, the Ministry of Housing and Urban-Rural Development and the State Administration for Market Regulation issued a notice outlining replicable policy mechanisms for renovating outdated residential elevators, summarizing local experiences in funding, safety mechanisms, and resident participation. On February 10, the People’s Bank of China released its Q4 2025 monetary policy report, emphasizing the implementation of financial measures such as relending for affordable housing and improving foundational real estate financial systems to support a new development model.

At the local level, Shanghai’s Jing'an, Pudong, and Xuhui districts began purchasing second-hand homes for affordable rental housing on February 2. On February 25, Shanghai introduced "Seven New Measures," easing home-purchase restrictions, optimizing provident fund usage, and adjusting property tax policies. Non-local households can now buy one home inside the Outer Ring Road with one year of social security or tax records, and two homes after three years. Those with a Shanghai residence permit for five years or more are exempt from these requirements. The provident fund loan cap for first-time buyers increased from 1.6 million yuan to 2.4 million yuan, with additional allowances for multi-child families and green building purchases, raising the maximum to 3.24 million yuan. Second-home loan limits were also raised, and eligibility criteria relaxed.

Fujian and Jiangxi introduced urban renewal policies, while Fujian and Chongqing optimized provident fund loan rules. Chongqing, Ningbo, and Jinan offered home-purchase subsidies. Additionally, Guangdong and Zhejiang issued approximately 20.4 billion yuan in special bonds to repurchase idle land.

Overall, 2026 is considered a critical year for stabilizing the real estate market, with early-year performance serving as a bellwether for annual trends. Real estate continues to play a vital role in supporting economic growth. With the annual "Two Sessions" taking place in early March, short-term policies are expected to focus on controlling new supply, reducing inventory, and optimizing housing quality. Medium- to long-term direction will depend on guidelines outlined in the forthcoming 15th Five-Year Plan.

Looking ahead, as holiday impacts fade, pent-up demand is expected to gradually release. Core cities may experience a mild recovery during the spring sales season, though market divergence will persist.

By the end of February, all 31 provincial-level "Two Sessions" had concluded, with "building better homes" emerging as a key priority. Compared to 2025, many regions shifted from "vigorously promoting" to "steadily advancing" quality housing initiatives, indicating a more measured approach in 2026.

Against this backdrop, the China Index Academy has identified representative residential projects from its 100-city price index sample, selecting well-known and influential developments based on sales performance, quality, and brand strength. These "typical project samples" for January-February 2026 are intended to serve as benchmarks for the industry.