Residential activity in China continues to remain weak in 2026

Residential activity in China remains weak, with total investment in residential buildings in real estate development falling by 11.7% year-on-year in March 2026, following a decline of 9.6% in February 2026. This weakness is attributed to subdued investor and consumer confidence, falling new home prices, rising debt amongst property developers, and weak confidence amongst private sector firms. The residential construction sector's underperformance will weigh on the overall construction industry output in 2026, with GlobalData expecting a further 1% contraction in real terms.