Multiple regions have implemented new real estate policies, effectively activating a large amount of pent-up homebuying demand and injecting policy momentum into the sustained recovery of the property market.
With the release of previously accumulated demand and the concentrated rollout of market-stabilizing measures across various cities, the national real estate market experienced an unexpectedly strong rebound during the May Day holiday period.
Data from the China Index Academy shows that during the holiday, the online signing area for new residential homes in 26 major cities reached 518,000 square meters, a year-on-year increase of 12.5%. Specifically, Shenzhen saw a 59% growth, Wuhan surged by 122%, and Shanghai increased by 45%.
The secondary housing market also showed signs of recovery. Approximately 2,300 pre-owned homes were transacted via online signings across 11 cities, marking a 26.7% year-on-year rise and a nearly 70% increase compared to the same period in 2024. Beijing, Shanghai, and Shenzhen recorded year-on-year growth rates of 76%, 16%, and 81%, respectively.
This round of market recovery is characterized by first-tier cities leading the uptrend, strong second-tier cities following suit, and a synergy between policy support and demand. Short-term market confidence is being restored, and homebuyers are accelerating their entry into the market. However, the future trajectory still faces uncertainties such as the volume of pre-owned home listings and price expectations. If core cities can stabilize the pace of transactions and prices, this rebound may gradually transition from a "short-term surge" to "sustained recovery."
Core housing markets are spearheading the recovery, with first-tier cities acting as bellwethers and being the first to show signs of improvement.
In April, Beijing recorded 17,893 online signings for pre-owned homes, a 14.9% year-on-year increase, hitting a five-year high for the same period. Nearly 4,000 new homes were sold, with both year-on-year and month-on-month growth reaching double digits. During the May Day holiday, market activity escalated further, with pre-owned home transactions surging 76% year-on-year, driven mainly by demand for upgrades and replacements.
Shanghai’s property market maintained a steady recovery, with both improvement-oriented and high-end homebuying demand being unleashed. In April, the city recorded 28,742 pre-owned home transactions, up 22.3% year-on-year, remaining at a high level for recent years. In the first four days of the holiday, 924 pre-owned homes were sold, a 13.8% year-on-year increase, while overall holiday transactions grew 45% compared to the same period last year.
A marketing director of a new development in Shanghai’s Xuhui District reported that the project received over a dozen reservations during the holiday, totaling approximately 500 million yuan. The number of visitors, including non-local and international buyers from countries such as Russia, the UK, and France, increased noticeably, reflecting growing recognition of the capital value of premium properties in core cities.
During the holiday, Guangzhou recorded more than 3,100 transactions for new homes, with daily visitor numbers reaching 8,692, a 30.8% year-on-year increase. Daily reservations surged to 634, up 50% year-on-year.
Shenzhen emerged as a strong growth driver in this recovery, benefiting from the relaxation of purchase restrictions in core areas. While the city’s new home sales fell 22% year-on-year in April, Beijing, Shanghai, and Guangzhou saw increases of 59%, 21%, and 10%, respectively.
Around the May Day holiday, Shenzhen witnessed a significant rise in property viewings and signings for both new and pre-owned homes. Data from Leyoujia showed that from May 1 to 4, offline viewings for new homes increased 30% year-on-year, while viewings for pre-owned homes rose 33%. Signings for new and pre-owned homes grew 42% and 55% year-on-year, respectively, both hitting six-year highs.
In Shenzhen’s Nanshan District, where purchase restrictions were eased, new home signings surged 106% year-on-year, while pre-owned home signings increased 83%. Buyers from other provinces, including Zhejiang, Shenyang, and Changsha, entered the market in greater numbers, indicating a rise in cross-province property investments.
Following the new policy, Longfor’s Guancui project in Shenzhen decided to advance its sales launch. All 92 units released on the first day were sold out within 40 minutes. The project manager noted a clear shift in buyer sentiment after the policy announcement, with a sharp increase in inquiries.
Several prospective buyers cited policy adjustments as a key reason for ending their wait-and-see approach and accelerating their entry into the market. One buyer, Ms. Zhang, who visited a project with her family, mentioned that she had initially planned to wait another six months. However, after the policy change, she felt the market might shift and decided to explore options during the holiday, surprised by the high turnout.
Strong second-tier cities also joined the recovery trend. After Wuhan introduced market-optimizing policies before the holiday, market activity quickly picked up. During the May Day period, new home sales area increased 92.8% year-on-year, with multiple upgrade-oriented projects seeing a doubling in visitor numbers, reflecting a concentrated release of long-pent-up demand for better housing.
The current market recovery is driven not by a single factor but by the natural release of both rigid and improvement-oriented demand, supported by top-level policy guidance and localized measures tailored to city-specific conditions.
On April 28, a meeting of the Political Bureau of the CPC Central Committee emphasized efforts to stabilize the real estate market and advance urban renewal, sending a clear signal at the macro level to support the industry and providing direction for local policy optimization.
Following this guidance, cities including Shenzhen, Guangzhou, Wuhan, Tianjin, Suzhou, and Zhongshan quickly introduced a mix of measures, ranging from relaxed purchase restrictions and higher provident fund loan limits to subsidies for home upgrades and optimized land supply.
Shenzhen took the lead by easing buying curbs in core areas like Futian and Nanshan, significantly lowering the entry barrier for non-local buyers. The policy quickly stimulated transactions in these areas, boosting activity across the entire market. Guangzhou introduced eight major measures, substantially raising provident fund loan limits and offering special subsidies for "selling old and buying new" homes, effectively facilitating transactions in both the new and pre-owned housing sectors.
Wuhan and Tianjin simultaneously rolled out optimization policies, easing credit rules, relaxing provident fund policies, and offering fiscal subsidies to reduce the financial threshold for first-time and upgrade-oriented buyers. Cities like Suzhou, Jinan, and Zhongshan followed suit by raising provident fund loan limits, adjusting purchase restrictions, and implementing talent-focused housing support, forming a policy framework led by first-tier cities and supported by second-tier cities.
Although some potential buyers remain cautious, the new policies have effectively activated a significant amount of waiting demand, providing continued momentum for market recovery.
According to Li Yujia, Chief Researcher at the Housing Policy Research Center of the Guangdong Urban-Rural Planning Institute, the policies introduced in core cities like Guangzhou and Shenzhen have played a role in driving the holiday recovery. If the volume of pre-owned home listings does not surge sharply again as in the second half of last year, and if listing prices and negotiation margins remain controllable at current low levels or decline further, it would help maintain the recently stabilized market expectations—a crucial factor for sustained recovery.
Cao Jingjing, General Manager of the Index Research Division at the China Index Academy, noted that in May, Guangzhou and Shenzhen are expected to see further demand release supported by new policies. In other core cities, new home markets are likely to remain stable in terms of volume and price, driven by the launch of high-quality housing projects. In the pre-owned home sector, transaction volumes may naturally decline as seasonal education-related demand subsides, while prices are expected to continue fluctuating slightly.
Looking ahead, regional and product differentiation will remain key features of the real estate market. Core areas in first-tier and strong second-tier cities, supported by population inflow, industrial base, and urban infrastructure, will continue to see resilient sales for upgrade-oriented homes and well-priced properties in prime locations. In contrast, third- and fourth-tier cities lacking industrial support and experiencing population outflow are likely to focus on market stabilization, with little chance of a broad-based price surge.
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