China’s property market is showing signs of recovery as new data reveals a surge in home sales across the mainland. Following the introduction of supportive measures by Beijing in late September, confidence among homebuyers appears to be reviving, leading to increased transactions in both new and secondary home markets.
Surge in Transactions Across Major Cities
According to the Lingping Real Estate Data Research Institute, new home transactions across 15 key cities jumped by 24% last week, with sales reaching 24,287 units. Similarly, secondary home sales surged by 20%, totaling 20,724 units across 10 major cities. These figures highlight a significant improvement from the average weekly sales recorded before the policy changes, which stood at 15,497 units.
Policy Measures Fuel Market Sentiment
Beijing’s recent initiatives to stimulate the housing market include reduced mortgage rates, lower down payment requirements, and relaxed residency rules. These policies, combined with a 4 trillion yuan (US$561.7 billion) credit line for “white-listed” projects, have been pivotal in halting the market’s four-year decline. The government also announced plans to renovate a million old homes in major urban centers, further boosting market sentiment.
Shanghai and Shenzhen Lead the Way
Shanghai has emerged as a key driver of this recovery. Data from 58 Anjuke, a prominent real estate platform, showed that daily transactions in the city’s secondary market exceeded 1,000 units for two consecutive days in October. At this pace, sales could reach 20,000 to 25,000 units by the end of the month.
Meanwhile, Shenzhen’s property market also demonstrated strong demand. Over the past weekend, all 192 flats in Guangming district were sold within 90 minutes, generating around 600 million yuan. Earlier this month, a project by Shum Yip Group saw all 332 units sold out on the day of their launch, indicating robust buyer interest.
A Measure of Policy Success
The rise in home sales during October will serve as an important metric for assessing the effectiveness of Beijing’s policy interventions. Once a powerhouse for China’s economic growth, the real estate sector has struggled in recent years due to stringent financial controls under the “three red lines” policy. However, recent signs of a turnaround, especially during the “golden week” holiday, suggest a shift. According to Beike Research Institute, new home sales surged by 65% year-on-year in 50 major cities during this period.
With analysts, including UBS, raising their growth forecasts for China’s GDP, the real estate market’s rebound could signal broader economic recovery, reaffirming the impact of Beijing’s decisive support measures.
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