Home sales and inquiries experienced a significant uptick in major cities such as Beijing and Shanghai during the recent National Day holiday, driven by new government policies aimed at stimulating the real estate market, industry experts reported.
Following the introduction of measures to relax home purchase restrictions ahead of the holiday, first-tier cities saw a marked recovery in housing transactions, even during a traditionally slow season for real estate.
In Shanghai, approximately 59,000 square meters of new homes were sold in the first six days of October, a notable increase from last year’s 29,000 square meters, according to Lu Wenxi, a market analyst with Centaline Shanghai. The pre-owned home market also thrived, with 2,133 existing residential properties changing hands, more than double the 1,064 units sold during the same period last year.
The surge in market activity can be attributed to favorable local policies that took effect on October 1, including lowered thresholds for non-local buyers, reduced down payments for first-time and second-home purchases, and expanded VAT exemptions on property transactions. “We’re seeing a 20% rise in business inquiries and visits,” noted Ye Yongxiang, an agent with Sinyi Realty in Shanghai’s Xuhui district, describing the holiday as unusually busy compared to the past two years.
Beijing reported a staggering 730% increase in new home transactions during the first six days of October compared to the previous year, with existing home sales also seeing a growth of 58% during the latter half of the holiday. In Guangzhou, over 3,000 new homes were sold via the real estate platform Beike, tripling sales figures from last year.
The rising demand is also evident in the secondary home market across major cities. In six key cities, an average of 384 pre-owned homes were sold daily, marking a 117.6% year-on-year increase, according to the Linping Real Estate Data Research Institute.
“The market confidence index has shown consistent growth over the past three weeks, reflecting the positive impact of supportive measures from local and central governments,” stated Wang Xiaoqiang, chief analyst at the institute. He emphasized that these government initiatives are crucial for stabilizing the property market and bolstering consumer confidence moving forward.