Investment in Chinese property fell by 16.2 per cent y/y in January–May

The total area of construction work over the period fell by 12.3 per cent y/y

Investment in China’s property sector fell by 16.2% year-on-year in January–May 2026, to 3.03 trillion yuan ($0.45 trillion). This was reported by SteelOrbis, citing the country’s National Bureau of Statistics (NBS).

Over the first five months of this year, the total floor area under construction in China fell by 12.3% year-on-year. This is 0.2 percentage points faster than in January–April.

New construction, which is directly linked to steel consumption in the sector, fell by 22.6 per cent year-on-year (by floor area) over the period.

In January–May 2026, the total floor area of new commercial property sold in China stood at 313.2 million m², which is 10.8% less than in the same period last year.

According to the China Institute of Metallurgical Industry Planning and Research, last year the construction sector’s share of the country’s total steel consumption fell to 49 per cent, compared with 58 per cent in 2020.

It should be recalled that at the end of last year, China outlined a plan to stabilise the property sector in 2026. It sets out measures for specific cities to strictly control new supply whilst reducing existing stock, and to accelerate the establishment of a new development model for the sector.

As reported by GMK Center, between January and May, Chinese steelmakers reduced steel production by 3.9% year-on-year to 415.5 million tonnes. Rolled steel output for the same period fell by 1.5% year-on-year to 593 million tonnes. In May alone, steel production stood at 84.4 million tonnes (-2.7% year-on-year), whilst rolled steel production was 123 million tonnes (-2.8% year-on-year).