Shanghai and Beijing Record Year-End Rise in Resale Home Sales

‍Shanghai and Beijing Record Year-End Rise in Resale Home Sales highlights renewed momentum in China’s top property markets as pre-owned home transactions increased toward the end of the year. The rise signals improving buyer confidence, driven by easing policy measures, attractive pricing, and pent-up demand from end-users. While challenges remain in the broader real estate sector, the uptick in resale activity suggests stabilization in key tier-one cities and offers cautious optimism for a gradual recovery in market sentiment.

As the year draws to a close, resale home transactions in Shanghai and Beijing have gathered momentum, helped by more approachable prices in the secondary market and the soaring cost of newly built properties.

In Shanghai, sales of pre-owned homes had already crossed 243,900 units by December 19, surpassing the total recorded for all of last year. This marked another step up from volumes seen in 2022 and 2023, according to figures released by the Shanghai Real Estate Transaction Center.

Beijing also saw a sharp pickup in activity. Resale transactions surged 20 percent month-on-month in November to 14,446 units, based on data from the city’s housing authority. At the same time, new resale listings on Lianjia increased modestly, while buyer inquiries rose even faster, pointing to growing market engagement.

Lower entry prices have been a major draw for buyers this year, said Lu Wenxi, a senior analyst at Shanghai Centaline Property. He noted that many homeowners were keen to sell in order to upgrade, leading to sizable price concessions that made second-hand homes more attractive.

Lu added that the high cost of new residential projects in Shanghai has further pushed buyers toward the resale market. For those with budgets slightly above CNY10 million, choices among new developments have been limited, making pre-owned homes the more practical option.

Beijing’s resale housing market has shown its own distinctive pattern, according to Guo Yi, chief analyst at property consultancy Heshuo Institution. Unit prices have declined for eight straight months, while the drop in average transaction values has been even more noticeable.

Guo pointed out that the typical price of a second-hand home in the capital slipped to around CNY3.5 million last month, down from about CNY3.8 million in June.

She emphasized that the balance between supply and demand will determine whether prices can find a floor. Although listings have fallen to roughly 157,000 units from last year’s peak of 176,000, supply remains elevated compared with the market’s earlier low of about 100,000 homes.

According to Guo, only when listings ease back into the 100,000 to 120,000 range is Beijing’s resale market likely to see genuine price stability or even a return to growth.

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Source: yicaiglobal‍