China’s real estate development investment fell 19.9% year-over-year to RMB 4.7979 trillion in the first eight months, according to the National Bureau of Statistics. The decline widened by 0.7 percentage points from the first seven months and was the largest on record, although it was slightly milder than the 20.1% contraction expected by the market. Residential investment dropped 19.7% to RMB 3.7017 trillion. Construction activity weakened broadly, with space under construction down 12.8%, new starts down 24.8% and completed floor space down 23.7%. New commercial housing sales fell 12.1% by floor area and 13.0% by value, while residential sales declined 13.0% and 13.1%, respectively. In contrast, second-hand housing signed contract floor area increased 10.6% to 549.23 million square meters, highlighting buyers’ preference for completed homes, more flexible pricing and immediate occupancy. Funds received by developers fell 21.0% to RMB 5.0893 trillion, with domestic loans, individual mortgages, self-raised funds, and deposits and advance receipts all declining. Unsold new commercial housing floor area edged down 1.1% to 753.49 million square meters by the end of August. The combination of weak investment, sales and financing indicates that the market remains in a correction phase, although stronger resale activity shows that underlying housing demand persists. Further stabilization of confidence and improved developer financing could help move the new-home market toward gradual stabilization.