In November, China’s housing market showed signs of recovery, particularly in the secondhand home sector, as a number of major cities reported notable increases in sales volumes. Analysts suggest this uptick reflects the positive impact of recent policy adjustments and signals a gradual improvement in the country’s property market.
Data from key cities reveals strong sales in the secondhand housing market. Shenzhen, the tech hub of Guangdong province, saw a significant surge, with 8,500 secondhand homes sold in November — the highest number in the past 46 months, according to real estate agency Centaline Property. Shanghai also witnessed impressive sales, reaching 27,050 units, the highest in 44 months, as reported by housing platform anjuke.com. Beijing’s secondhand home sales rose to 18,763 units in November, marking the best performance in nearly 20 months, according to the Beijing Municipal Commission of Housing and Urban-Rural Development.
The overall recovery trend is not limited to secondhand homes. The China Real Estate Information Corporation reported that new home sales in 30 major cities reached a new high for the year, with a 3% month-on-month increase and a 20% year-on-year rise in November.
Analysts attribute this revival in the housing market to a series of policy measures aimed at easing financial pressures and making home purchases more accessible. These measures include preferential tax policies in cities like Beijing, Shanghai, and Shenzhen, as well as reductions in down payment ratios and the relaxation of home purchase restrictions. In September, the Chinese government also lowered the minimum down payment ratio to 15% for all housing categories, further stimulating market activity.
Yan Yuejin, deputy director at the E-house China R&D Institute, emphasized that these policy changes have significantly reduced financial burdens on homebuyers and contributed to the rebound in housing transactions. Chen Wenjing, director of market research at the China Index Academy, noted that down payment requirements and mortgage interest rates have reached record lows, while home purchase restrictions in many cities are at their most relaxed since implementation.
These policy adjustments have helped unlock pent-up housing demand, particularly in top-tier cities, where transaction growth is expected to continue in the coming months. However, the outlook remains mixed for smaller, inland cities, where real estate activity is still lagging, according to the China Real Estate Information Corporation.
Overall, analysts believe that the improved consumer sentiment and investor confidence, fueled by these favorable policies, will play a key role in stabilizing and gradually recovering the broader property market in China, supporting the country’s annual growth targets.