China saw a significant rise in second-hand home transactions in major cities like Beijing, Shanghai and Guangzhou in December 2024, fueled by a series of policies and measures aimed at stabilizing and bolstering the real estate market.
From easing restrictive policies to introducing stimulus measures, China's 2024 real estate policy package, whether at the country or local level, has brought extensive changes. Adjustments have been made to mortgage rates, transaction taxes, down payment ratios, and both supply and demand of existing homes.
Following these adjustments, renewed confidence and rising demand have been observed in the country's most dynamic regional real estate markets.
In Beijing, home deals for second-hand homes registered online reached 21,556 in December 2024, a 14.9-percent rise from the previous month and a 66.3-percent surge year on year, according to the Beijing Municipal Commission of Housing and Urban-rural Development.
This marked the first time in 21 months that the capital's monthly second-home home transaction figures surpassed 20,000 units.
At a real estate agency in Chaoyang District, Dong Yuehui was considering upgrading her home due to its noisy location. After the recent policy adjustments, she began actively exploring options and viewed around ten properties.
Dong said that recently there had been a growing number of consumers with similar intentions to her, and the agents assisting her have been much busier than earlier in 2024.
"I often see many potential buyers coming to view properties in my residential community. Appointments with agents are now required, and the times of viewing are no longer that flexible. The agents now speak more quickly, rushing to serve the next client," she said. 。 The latest official data showed the city's second-hand housing transactions reached 173,212 units in 2024, up 13.1 percent year on year.
"On weekends, our office is almost empty of agents because they are out showing properties. In December, we sold 11 units mostly to clients who want to upgrade their homes. Most of them pay in full or with small loans," said Shu Jin who works at the agency.
In Shanghai, 29,711 second-hand homes were sold in December 2024, representing a 9.84-percent increase from the previous month and setting a new three-and-a-half-year high in transactions, according to data from the Shanghai Real Estate Transaction Center.
According to Liu Tao, a local real estate agent, the market has seen a notable recovery in the past three months.
"From August to September last year, there were almost no transactions in this residential community. Then, in late September, a new policy was introduced on the 30th. After that, another new policy was rolled out in October. These two policies stimulated the market, leading to two transactions per month from October to December," Liu said.
Second-hand home prices in Shanghai began stabilizing in October and rose slightly by 1.5 percent month-on-month in December, according to data from leading real estate brokerage firm Lianjia.
"Since the new policies in September, Shanghai's second-hand housing market has remained very active, with transactions exceeding 20,000 units almost every month, a remarkable increase from the 15,000 units per month before the policy changes," said Yang Yulei, principal analyst at Shanghai Lianjia Research Institute.
In Guangzhou, the real estate market continued to gain momentum in December 2024. From November 26 to December 25, the city recorded 11,494 second-hand home transactions totaling 1.17 million square meters, a 17.33-percent increase in volume and a 17.83-percent rise in area compared to 2024, according to data from Guangzhou Association of Real Estate Agents.
Guangzhou's second-hand home transactions have remained above 10,000 units for three consecutive months, with December hitting the highest levels of the year.
Analysts attributed the sales boom to policy incentives introduced since late September, and expect the market to remain strong this month.
"The policy effects are just beginning to be felt. These effects won't be limited to just one month. We believe it will keep the second-hand home transaction volume at a high level. Taking into consideration the traditional peak sales season in the first quarter, we can expect the momentum to sustain in the second-hand housing market," said Li Yujia, principal researcher at the Guangdong Housing Policy Research Center, a government-linked think tank.
China's second-hand home transactions surge in December amid policy incentives
