Data from the China Index Academy reveals that in the first half of 2026, the number of new furnished property projects launched nationwide was 301, marking a year-on-year decrease of 31.9%. The number of furnished residential units completed reached 171,000, representing a 36.6% decline compared to the same period last year, with the rate of decline in the second quarter showing a slight narrowing.
Furnished housing completions were primarily concentrated in second-tier cities, accounting for 45.1% of the total. First-tier cities accounted for 32.4%, an increase of 4.5 percentage points year-on-year, while third- and fourth-tier cities made up 22.5%.
Project Launches and Market Composition
In the first six months of 2026, the total number of new furnished project launches fell by 31.9% year-on-year. The year-on-year decline in the second quarter narrowed by 7 percentage points compared to the first quarter.
Geographically, furnished housing launches were mainly concentrated in the South China and East China regions, accounting for 41.4% and 24.3% respectively. At the city level, Shenzhen recorded the highest number of furnished unit launches at 19,000, followed by Chengdu and Beijing. The average number of units for the top 10 cities was approximately 11,000.
Pricing and Fit-Out Standards
New launches were primarily in the price segments above RMB 50,000 and between RMB 20,000-30,000 per square meter. The share of the RMB 30,000-40,000 and above RMB 50,000 segments increased by 5.75 and 1.4 percentage points year-on-year, respectively, while the share of the RMB 10,000-20,000 segment fell by 9.36 percentage points.
Regarding fit-out standards, mid-range finishes (RMB 2,000-5,000 per square meter) were most common, comprising 64.7% of launches, up 3.8 percentage points year-on-year. Low-range finishes (below RMB 2,000 per square meter) accounted for 22.3%, down 8 percentage points year-on-year.
Furnished Unit Penetration Rate
The nationwide average penetration rate for furnished units in new projects was 25.13% in H1 2026, down 1.6 percentage points year-on-year. The rates for first-tier, second-tier, and third-/fourth-tier cities were 89.76%, 30.9%, and 10.41%, respectively, declining by 0.4, 2.0, and 1.6 percentage points.
By region, South China had the highest average penetration rate at nearly 50% (49.8%), followed by East China at 26.9%.
Leading Developers
In terms of furnished unit launches, Poly Developments And Holdings Group Co.,Ltd. (SH: 600048) led the market with 12,000 units, followed by CHINA RES LAND (HK: 01109) and Xiamen C&D Inc. (SH: 600153) with 5,539 and 5,281 units respectively. Companies including Dahua Group, Hangzhou Binjiang Real Estate Group Co.,Ltd. (SZ: 002244), and CHINA RAIL CONS (HK: 01186) achieved a 100% furnished unit rate in their new project launches.
Fittings and Appliance Market
Among the seven major home furnishing categories, building materials had the highest installation volume at 3.755 million units, though this represented a 36.6% year-on-year decline. With the exception of comfort systems, which saw a slight 1.9% decrease, all other categories declined by over 30% year-on-year.
Installation rates for building materials and bathroom fittings remained high, both exceeding 90%. In contrast, comfort systems and smart home products had lower installation rates of 31.2% and 32%, respectively.
Category Performance Trends
Market size for most product categories within furnished projects declined year-on-year in H1 2026. Fresh air systems and air conditioning units were exceptions, posting growth of 26.1% and 12.9%, respectively. Some items, like dishwashers, saw relatively moderate declines of around 10%.
Products such as disinfecting cabinets, video door phones, smart switches, and shower screens experienced significant declines exceeding 50%.
Installation Rate Shifts
Basic product categories in furnished projects maintained installation rates above 90%, making them standard features. These include kitchen sinks, faucets, range hoods, bathroom showers, vanities, washbasins, faucets, toilets, tiles, flooring, switches & sockets, cabinets, interior doors, main entrance doors, latex paint, and lighting.
Installation rates for smart systems, fresh air systems, air conditioning, electric ovens, and dishwashers increased by over 10 percentage points. Conversely, rates for video door phones and shower screens fell sharply by more than 10%.
Developer Appliance Integration
Looking at fittings integration by developers, Poly Developments And Holdings Group Co.,Ltd. had the highest volume in H1 2026, with nearly 40,000 units equipped. CHINA RES LAND and China Overseas Land & Investment followed with 22,900 and 22,000 units, respectively.
Among monitored key enterprises, the average installation rate was 51.2%. Lianfa Group recorded the highest rate at 75%, followed by China Construction Third Engineering Bureau and Hangzhou Binjiang Real Estate Group Co.,Ltd., both with rates approaching 70%.
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