The secondary housing market in China's core cities showed early signs of recovery in March, with first-tier cities leading the rebound as demand from first-time homebuyers picked up notably, according to data from multiple sources.
In Shanghai's Xuhui District, real estate agents reported that weekend client viewings rose by over 50 percent compared with the period before recent policy adjustments. Transaction decisions have accelerated, with more deals closing within seven days.
"Currently, Our active transaction volume has reached about 110 units, up about 60 percent from January," said Huang Yan, store manager of a local real estate agency.
According to data from Chinese real-estate brokerage company Lianjia, Shanghai recorded 31,000 second-hand home transactions in March, a 6-percent increase year on year.
Data from the China Index Academy showed that March transactions of second-hand commercial housing in Shanghai hit a five-year high. Notably, the average price of second-hand residential homes edged up 0.08 percent month on month, ending a 33-month downward streak.
In Beijing, online signing data from the Municipal Commission of Housing and Urban-Rural Development showed 19,886 second-hand home transactions in March, the highest monthly volume in 15 months.
Meanwhile, second-tier cities are also seeing increased transactional activity. In Wuhan City, capital of central China's Hubei Province, new commercial housing transactions reached 12,072 units in March, surging 79 percent from February. In Nanjing City, east China's Jiangsu Province, "busy," "fast," and "many" have become the go-to phrases for real estate agents describing the current market.
"Platform data shows property listings increased 20 percent year on year. Both owners' willingness to list and buyers' interest in viewing homes have risen. Transactions are concentrated in units of 60 to 120 square meters with a total price below 2 million yuan. Demand is mainly for first homes and modest upgrades," said Li Fei, marketing director of a local real estate agency.
Industry analysts said confidence in the second-hand housing market is gradually recovering, especially in core areas of first- and second-tier cities. Pent-up demand from the post-holiday period, along with policy optimizations, has helped restore buyer confidence. If current sentiment continues, cities may maintain high activity levels in April.
"The first quarter is typically the peak season for first-time homebuyers. Around the Spring Festival, there is demand from young couples for wedding homes, from returnees for employment-related housing, and for school-district homes. All these factors help release second-hand home demand. Policies have strongly supported home purchases, with both central and local governments making significant efforts," said Li Yujia, chief researcher of the Housing Policy Research Center of Guangdong Provincial Urban and Rural Planning Institute.
China's core cities witness early recovery in second-hand home market
