Shanghai’s pre-owned home sales have surged, surpassing 1,000 units in a single day for the first time in four months. On October 15, 1,334 second-hand properties were sold, marking a significant rebound in the market. This recovery is largely attributed to the supportive real estate policies introduced by the Chinese central government in late September.
The revival follows key measures announced by Pan Gongsheng, governor of China’s central bank, on September 24. These policies include a 50-basis-point reduction in mortgage rates, bringing them closer to new loan levels, and lowering the minimum down payment for second homes from 25% to just 15%. Additionally, on September 29, Shanghai implemented further supportive measures, such as relaxing resale restrictions and extending land value-added tax exemptions.
The impact of these measures was immediately noticeable during the National Day holiday, which ended on October 7. Over 2,130 pre-owned homes were sold during this seven-day period, double the number of transactions compared to the same time last year. Following the holiday, the market continued its upward trend, with nearly 900 units sold over the next five working days, reflecting a 60% increase compared to the previous period.
As of October 13, Shanghai recorded a total of 7,949 pre-owned home sales for the month, a 7.7% rise compared to September and a staggering 75% increase from the same period last year. Market analysts predict that total sales in October could reach between 18,000 and 20,000 units, signaling a robust recovery in the city’s second-hand property sector.
However, despite the growing sales volume, prices remain stable, with no immediate conditions for price increases. Industry insiders believe it will take time for prices to rise, even as sales continue to improve.
With these new policies, Shanghai’s pre-owned home market is set to rebound throughout the fourth quarter of 2024, giving a much-needed boost to the city’s real estate sector.
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