Traditionally, the property market tends to cool down after the peak spring sales period, with declines in inquiries and property viewings. However, this year has been different, showing sustained activity beyond the usual season, according to a broker from Lianjia in Chongqing's Central Park district.
Since the beginning of the year, real estate markets across many regions in China have gradually warmed up. Industry experts widely agree that with increased transaction volumes during the "small spring" period in March and April, the market is showing signs of easing inventory pressure and stabilizing prices.
Major cities are experiencing a robust "Red May" in their housing markets. Since May, the transaction volumes for second-hand homes in Beijing and Shanghai have maintained significant year-on-year growth. Data from the China Index Academy shows that from May 1 to 24, the year-on-year increases in second-hand home transactions in Beijing and Shanghai were 15% and 29%, respectively. Notably, Shanghai recorded 1,664 online signings on May 10 alone, setting a new five-year high for daily transactions, following the previous record of 1,632 on April 11.
Influenced by optimized policies introduced at the end of April, market activity in Guangzhou and Shenzhen has also improved in May. A spokesperson for the Guangzhou municipal government stated that since May, weekly visits, reservations, and online signings for key new housing projects in the city have increased by 26.9%, 36.9%, and 11.4% month-on-month, respectively. Weekly second-hand residential signings rose by 9.3%, while new listings decreased by 16.7% year-on-year.
According to monitoring by Shenzhen Shell Research Institute, as of May 27, new residential property transactions in Shenzhen for May reached 3,970 units, a 51% increase compared to the same period last year. Second-hand residential transactions totaled 5,006 units, up 21% year-on-year, bringing the combined transaction volume for new and second-hand homes to 8,976 units, a 33% increase from the previous year.
In terms of prices, second-hand home prices in Shanghai have achieved three consecutive monthly increases since February, with the growth rate expanding. Prices rose by 0.2% month-on-month in February, 0.4% in March, and reached 0.7% in April. Besides Shanghai, cities like Xuzhou, Ningbo, and Hefei have also seen recent increases in second-hand home prices. Although prices in Hangzhou and Nanjing have not risen, the rate of decline has narrowed significantly.
Recent data from the National Bureau of Statistics on housing prices in 70 large and medium-sized cities in April shows that among 12 cities in the Yangtze River Delta, housing prices increased in four, remained stable in two, and declined in six. Shanghai, Hangzhou, and Hefei recorded year-on-year price increases. According to data from CRIC, the average transaction price for new commercial residential properties in 40 cities in the Yangtze River Delta was 29,523 yuan per square meter in April, up 5.6% month-on-month and 3.3% year-on-year.
Lu Wenxi, an analyst at Shanghai Centaline Property, noted that the rise in average transaction prices for new homes is largely due to increased activity in high-end improvement projects. Among the top ten new home transactions in Shanghai in April, three projects had average prices exceeding 100,000 yuan per square meter, with prices for larger units over 144 square meters showing the most significant increases. Lu believes that following the strong spring sales period, the "Red May" has continued the upward trend in overall new home prices month-on-month.
Cao Jingjing, General Manager of the Index Research Department at the China Index Academy, stated that overall, since April, the second-hand housing market in key cities has maintained the active momentum seen in spring. In May, market activity in Beijing and Shanghai remained strong, with year-on-year transaction growth further expanding. Guangzhou and Shenzhen have shown improvement following policy optimizations at the end of April, with year-on-year transaction growth turning positive in early May. In terms of transaction structure, low-priced and small-sized properties continue to be the core drivers of this recovery, reflecting the increased attractiveness of second-hand homes to first-time buyers due to their improved value after price adjustments. In the short term, as second-hand home transactions in core cities continue to grow, market activity is expected to gradually spread to larger and higher-priced segments, building momentum for steady market recovery.
It is worth noting that the State Council recently issued the "15th Five-Year Plan for Urban Renewal," outlining goals for significant progress in urban renewal actions by 2030, with initial achievements in transforming urban development and construction methods, making cities high-quality living spaces for residents. The plan also proposes implementing housing quality improvement projects, balancing new construction with existing stock updates, and enhancing standards, design, materials, construction, and maintenance across the entire housing chain to build safe, comfortable, green, and smart "good homes."
Experts suggest that urban renewal will fully activate related industrial chains, bringing long-term investment opportunities. Fan Sibin, Dean of the Urban Renewal Institute at the China Academy of Urban Planning and Design, stated that smart construction, green and low-carbon initiatives, and prefabricated building methods will promote and drive related investments and industries, while also advancing the upgrade of consumer infrastructure and the development of productive and lifestyle services.
Zhang Wenzhong, Vice Chairman of the Urban Planning Society of China, predicts that the renewal and renovation of old residential areas, old factories, and inefficient industrial parks and office buildings will give rise to new business formats. This will promote the development of smart industries, including the Internet of Things and the digital economy. During the "15th Five-Year Plan" period, the market capacity for urban renewal is estimated to exceed 15 trillion yuan.
Additionally, the Ministry of Finance and the Ministry of Housing and Urban-Rural Development recently released the 2026 central fiscal urban renewal subsidy policy, with a total subsidy scale exceeding 15 billion yuan, focusing on renovating old residential areas and improving infrastructure. Cities in the Yangtze River Delta, such as Wuxi, Ningbo, and Maanshan, are included in the subsidy list.
According to incomplete statistics from the China Index Academy, over 40 policies related to "replacing old with new" have been implemented since the beginning of this year.
To consolidate the market's recovery trend, demand-side policies in various regions need to be continuously followed up, especially by further strengthening credit and housing provident fund policies. At the same time, expanding the scope of support for "selling old to buy new," increasing loan amounts for improvement-oriented purchases, and maintaining low interest rates for first homes—particularly supporting multi-child families and new urban residents—are essential to further stabilize market confidence. Zhang Bo, Dean of the 58 Anjuke Research Institute, suggests that supply-side policies should be tailored to the characteristics of different cities and regions, implementing precise measures based on local conditions.
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