Data released on June 30th provides a detailed analysis of sales performance for Chinese real estate developers in the first half of 2026.
The total sales value for the top 100 real estate companies reached 1,586.36 billion yuan. The year-on-year decline in this figure narrowed by 1.3 percentage points compared to the period from January to May, marking the fourth consecutive month of contraction in the rate of decrease. This improvement is primarily attributed to increased activity in the property markets of core cities, which has helped reduce the sales decline for major developers. The operational sales value for the 100 firms stood at 1,259.63 billion yuan, while their equity sales value was 1,119.34 billion yuan.
In June alone, the full-caliber sales value for the 100 companies increased by 11.8% month-on-month.
Looking at specific companies, several, including China Overseas Land & Investment Ltd, China Merchants Shekou Industrial Zone Holdings Co.,Ltd. (SHE: 001979), and China Jinmao Holdings Group Limited, saw their sales grow by approximately 10% year-on-year in the first half. Others, such as Beijing Urban Construction Group and Lianfa Group, achieved sales growth exceeding 20%.
This performance is driven by two key factors. Firstly, these companies have a strategic focus on core cities, particularly first-tier cities, which provides strong support for sales and inventory turnover. Secondly, they have successfully launched popular products tailored to market demand. For instance, China Overseas Land & Investment Ltd launched the 'Jiushu Manhe' project in Beijing's Tongzhou district targeting first-time buyers and upgraders, and the 'Anlan Beijing' project in Haidian's Shucun area aimed at high-end upgraders. These differentiated product strategies have facilitated strong project sales and supported overall performance growth.
In the first half of 2026, there were 3 companies with sales exceeding 100 billion yuan, one fewer than the same period last year. The number of companies with sales over 10 billion yuan fell to 34, a reduction of 12 year-on-year. The cohort of 100-billion-yuan firms has largely stabilized, while the number of 10-billion-yuan companies continues to shrink. This reflects the industry's necessary shift from "high-leverage expansion" to "prudent operation." Market share is increasingly consolidating around financially healthy central government-owned enterprises, state-owned enterprises, and regionally-focused private firms, correcting previous resource misallocation.
Companies are refocusing on product development and service enhancement while accelerating their transition into lighter-asset sectors like project management and operations. This stratification is driving the industry away from homogeneous competition towards a more diversified, layered structure. Although the overall scale is contracting, profit structures and business models are becoming more solid and sustainable.
Detailed Performance Analysis
Geographic Focus
For representative companies, the contribution of first-tier cities to sales performance has now surpassed that of second-tier cities. Sales from the top ten cities account for over 70% of the total.
The contribution from first-tier cities increased by 5.8 percentage points to 45.5% of sales for 20 representative developers in H1 2026, now exceeding the 44.6% contribution from second-tier cities. The share from second-tier cities fell by 3.2 percentage points year-on-year. The contribution from third- and fourth-tier cities continued to decline, dropping 2.6 percentage points to 9.8%.
Leading developers have concentrated their recent land acquisitions and investments in prime locations within first-tier cities like Beijing, Shanghai, Guangzhou, and Shenzhen. This has significantly increased the supply of new projects and high-value, upgraded properties in core areas. Coupled with favorable policies in first-tier cities, such as optimized purchase restrictions and lower down payments and interest rates, inventory turnover rates in core areas have significantly outperformed those in second-tier cities. Both volume and price factors have structurally pushed the sales contribution of first-tier cities above that of second-tier cities.
Among specific companies, nine developers, including China Overseas Land & Investment Ltd, CHINA RES LAND (HKG: 01109), China Merchants Shekou Industrial Zone Holdings Co.,Ltd. (SHE: 001979), YUEXIU PROPERTY (HKG: 00123), Poly Property Group Limited, China Construction First Building Group, CHINA RAILWAY (HKG: 00390), China Construction Dongfu Co., Ltd., and Xiangyu Real Estate, saw over 50% of their sales come from first-tier cities.
The contribution rate from the top ten cities increased by 6.7 percentage points to 70.5%. Among first-tier cities, the sales contribution shares of Beijing, Guangzhou, and Shenzhen all increased, with Shenzhen showing the largest gain of 5.7 percentage points. Among second-tier cities, Hangzhou's contribution share rose by 1.7 percentage points to 9.1%.
The real estate market remains in a period of deep adjustment, but core cities are demonstrating strong resilience. In recent years, regions with strong population attraction and high-quality industries have become increasingly attractive to real estate companies. The overlap between the top ten cities for sales contribution among representative developers and the top ten cities for real estate development investment attractiveness is 80%.
Product Strategy
Influenced by the product strategies of leading companies and favorable policies, the sales share of high-end products continues to rise.
In the first half of 2026, sales of high-end projects with areas above 200 square meters accounted for 25.3% of the total for representative companies, a rapid increase of 10.9 percentage points year-on-year. The share of all other area segments declined. Projects between 90-140 square meters, targeting first-time upgraders, remained the mainstay product, accounting for the highest share at 40.8%.
Representative companies, primarily nationally-focused leaders, concentrate their investments in core first- and second-tier cities. Leveraging financing advantages, they tend to acquire scarce land plots in core areas and are more inclined to develop high-end products. Furthermore, after the removal of price caps in many areas, companies have been able to launch large, well-equipped flats or low-density products, actively shifting their supply structure towards the high-end segment. Additionally, the lifting of purchase restrictions in multiple cities has further released demand for upgraded and high-end products, boosting their market share.
Analyzed by city tier, the share of high-end products (above 200 sqm) grew the fastest in both first-tier cities (up 15.5 percentage points) and second-tier cities (up 1.04 percentage points) in H1 2026. In third- and fourth-tier cities, the share of first-time upgrade products (90-140 sqm) grew the fastest, increasing by 4.7 percentage points to 47.0%.
On the policy front, some first-tier cities have relaxed purchase restrictions in core areas or optimized mortgage conditions, allowing previously suppressed demand for properties priced above ten million yuan to enter the market, driving up the sales share of high-end products in these cities.
Marketing Evolution
Under the dual pressure of reducing inventory and achieving mid-year targets in the first half of 2026, marketing strategies have evolved from simple price cuts to a tripartite approach combining "price packages + experiential scenarios + digitalization."
Firstly, holiday promotions and discounts have become standard marketing tactics. Developers combine price incentives with holiday-themed campaigns to boost sales. Discounts include flash sales of special-priced units, fixed-price 'work-for-equity' apartments, and total price discounts plus extra offers. Some projects release limited special-priced units to attract visitors. Other combinations involve price reductions bundled with perks like free parking space usage rights, parking space vouchers, or complimentary furniture, appliances, and upgraded finishes to reduce the actual cost for buyers. Developers also actively utilize festivals like Spring Festival, Labor Day, and Dragon Boat Festival, pairing them with cultural experiences and gifts to increase project exposure.
Secondly, offline experiential marketing and cross-industry collaborations are used for customer acquisition. Some developers participate in government-organized events like 'Summer Home-buying Festivals' or property exhibitions, setting up joint booths with on-site policy consultation and bank loan green channels. Some cities combine events with sports broadcasts or night markets to attract crowds. Additionally, community and social circle marketing is employed. High-end projects often maintain relationships with existing owners through clubs, private dinners, and film screenings to encourage referrals and social network expansion.
Thirdly, artificial intelligence is being integrated into marketing for cost efficiency and broader reach. Examples include AI-powered live-streaming robots for 24/7 virtual tours, AI customer service for handling inquiries, and AI outbound calls to re-engage dormant leads, combined with location-based advertising to target high-intent audiences.
Fourthly, pre-sales customer pooling and rapid project launches are implemented for fast inventory turnover. Some developers start freezing deposits and locking in customers 1-2 months before obtaining sales permits through city showrooms, pop-up stores, or temporary reception centers, conducting multiple rounds of subscription to build hype and a sense of urgency, followed by quick launches after permit acquisition to shorten the decision cycle and improve conversion rates.
Market Outlook
Supported by the launch of high-quality 'good house' projects in core cities and improving supply-demand dynamics in the secondary market, transaction activity in both new and existing homes is expected to maintain a certain level of vitality. The decline in sales for key developers is anticipated to continue narrowing.
On the policy front, the central government emphasized "stabilizing the real estate market" twice in H1 2026, with important plans and task deployments following. The Government Work Report in March set the tone to "focus on stabilizing the real estate market." On April 28th, a meeting of the Political Bureau of the Central Committee reiterated the goal to "strive to stabilize the real estate market," highlighting its importance and the government's determined stance. In March, the outline for the 15th Five-Year Plan was released, comprehensively deploying real estate tasks for the next five years, explicitly listing "promoting high-quality development of real estate" as a separate section. In June, an article reiterated the need to "accelerate the repair of household balance sheets and focus on stabilizing the real estate market." It is expected that policies in the second half of the year will continue to be precisely implemented around "stabilizing housing prices and expectations."
For the new home market, recovery is uneven. Transactions rebounded in first-tier and some core second-tier cities driven by high-quality upgrade projects, but the extent of recovery heavily depends on "product strength + locational scarcity," deepening market divergence. Preliminary statistics show new home sales area in 100 cities fell approximately 12% year-on-year in H1 2026, with first-tier cities down about 3%, and representative second-tier and third/fourth-tier cities down about 14% and 13%, respectively. The market showed some recovery in Q2 2026, with transaction volume in first-tier cities turning to year-on-year growth. In H2, due to a lower base in 2025, the year-on-year decline in new home sales is expected to gradually narrow. The continuous launch of 'good house' projects in core cities and ongoing supportive policies like those related to housing provident funds will provide some market support. However, recovery will mainly be structural, driven by quality supply, and a comprehensive market stabilization will take time.
The secondary home market continues to outperform the new home market. Preliminary statistics show approximately 760,000 existing home transactions in 20 key cities in H1, up about 6% year-on-year, with monthly growth rates exceeding 10% in Q2, indicating sustained activity stronger than in previous years. Since Q4 last year, listing volumes in core cities have stabilized, and market expectations are gradually returning to rationality. After a prolonged price adjustment, the barrier to entry for buying existing homes has significantly lowered, releasing rigid demand and strongly supporting transaction volume. In H2, the secondary home market in core cities is expected to maintain relatively high activity. Continued transaction improvement coupled with stabilized listings may further narrow price declines, with the foundation for price stabilization gradually strengthening in some cities.
In the land market, the first half continued the trend of "reduced volume, improved quality." As of June 26th, the transaction scale for residential land in 300 cities fell 24% year-on-year, with land transfer fees down 31%. Since May, driven by transactions of premium plots in core cities, land transfer fees have grown sequentially, and the year-on-year decline has narrowed. The average premium rate for residential land in 300 cities was 9.0% in H1, down 1.2 percentage points year-on-year but up 5.6 percentage points from H2 2025.
Regarding developer sales, if policies continue to be precisely strengthened in H2, key city markets sustain their recovery, and developers intensify marketing efforts, the decline in sales for key developers is expected to continue narrowing. In product development, companies need to persistently create "good houses," focus on upgrade-oriented products, and optimize aspects like usable area ratio and elderly-friendly design to move beyond price competition.
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