China's Home Prices to Decline Further in 2026, Fitch Says

MT Newswires Live12-09

China's average home prices will continue to drop between 4% and 6% in 2026, Fitch Ratings said in a Tuesday release.

Support measures for house sales in the country have yet to take off, while late-stage mortgage arrears could see a moderate decline due to a weak economy and dampened income and employment, Fitch said.

In Australia, home prices should grow between 3% and 5% next year, as reduced interest rates and limited property supply growth counter reduced affordability, Fitch said.

For Japan, house prices will expand between 3% and 4% due to tight supply and higher incomes.

Prices will gain support from financing conditions early next year, although the trend will slowly ease as policy rates increase, Fitch said.

Mortgage arrears could slightly rise to between 0.45% and 0.65% amid affordability headwinds, although this should be controlled by steady employment conditions.

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