Favorable policies are coming together intensively! Property market activity in many places increased during the National Day holiday

On October 7th, the cities of Dongfang and Chengmai in Hainan made headlines by lifting restrictions on purchasing commercial housing, a significant move in the ongoing adjustment and optimization of the real estate market. Since September, major first-tier cities have been introducing new policies aimed at easing purchase constraints, with local governments continually refining their real estate measures. These actions have played a vital role in gradually restoring market confidence.

The Ministry of Housing and Urban-Rural Development reports that several regions observed a notable uptick in visitor numbers, home viewings, and transaction volumes during the National Day holiday.

Recent statistics indicate that most real estate projects promoting their offerings during the holiday enjoyed visitor increases of over 50% year-on-year. For instance, Hunan Province saw new home viewings jump by an impressive 101.5% between October 1 and 6, while second-hand home viewings rose by 75%. In Sichuan, visitor numbers for selected projects surged by an average of 70% during the first three days of the holiday compared to prior levels, with transaction conversion rates skyrocketing by 140%. Additionally, Guizhou reported sales of 137,500 square meters of commercial housing and 1,187 units from September 30 to October 4, marking a remarkable 44.3% year-on-year increase and a total transaction value of 754 million yuan, up by 54.2%.

The Ministry has noted that since late September, major first-tier cities including Beijing, Shanghai, Guangzhou, and Shenzhen have progressively revised their housing purchase restrictions. Over ten provinces and cities, such as Chongqing, Sichuan, Guangdong, Hubei, and Yunnan, have issued policy documents to foster a healthy real estate market. More than 130 cities, including Wuhan, Shangrao, Yangzhou, and Xining, have organized promotional seasons and housing expos, featuring participation from over 1,000 real estate companies and around 2,000 projects.

Dr. Yu Xiaofen, Director of the China Housing and Real Estate Research Institute at Zhejiang University, observed a long-awaited resurgence in local real estate markets, with significant increases in new home sales compared to second-hand properties. Third- and fourth-tier cities, which had been relatively quiet for a long time, are now reflecting the booming transaction volumes characteristic of first- and second-tier cities. Overall, market sentiment is becoming increasingly optimistic.

In Beijing, the demand for second-hand homes has rebounded, and interest in new properties has surged. On the evening of September 30, the city announced adjustments to its housing policies, particularly shortening the social insurance requirement for non-resident families looking to buy homes. Specifically, the requirement was reduced from five years to two years outside the Fifth Ring Road, and from five years to three years within it. Real estate agents have noted an increase in customer traffic during the holiday, a trend attributed to these new policies.

Agent Shi Guoqing from a real estate agency in Beijing’s Tongzhou district reported a bustling environment, noting he received sixty to seventy calls throughout the holiday. He pointed out that many clients who previously didn’t qualify to purchase are now eligible due to the new regulations.

One Beijing resident shared that the recent drop in interest rates has motivated them to consider a new home purchase. Under the new policy, non-resident buyers in Tongzhou now only need two years of social insurance or tax payment records to qualify for buying a home, a welcome change for those interested in the Tongzhou market.

Agency managers across Beijing indicated a significant increase in client consultations and property viewings during the holiday, far surpassing expectations. According to ministry data, second-hand home viewings in Beijing soared by 104.1% compared to the same period last year, while the new home market also saw substantial growth, with visitor numbers climbing 68%.

In Shenzhen, just a week after new policies were enacted, the real estate market experienced a surge in transaction volumes. Several developers reported a marked increase in potential buyers during the holiday, with one manager noting a five to six-fold rise in customer traffic compared to recent weekends.

An official from the Shenzhen Real Estate Association revealed that from October 1 to 6, the number of second-hand home viewings exceeded 20,000, a 47% increase compared to September.

In Guangzhou, real estate activity noticeably picked up following the complete removal of purchase limits on September 29. During the holiday, many sales offices buzzed with activity, with customers making quicker decisions than in the past.

Finally, Shanghai experienced a considerable increase in visitor numbers at various properties, with managers reporting a doubling of foot traffic and heightened sales activity throughout the holiday. The overall sentiment in the housing market has positively shifted, driven by lowered entry barriers that are attracting a growing pool of qualified buyers.

This comprehensive analysis suggests that ongoing adjustments to housing policies across major Chinese cities are having a tangible impact, invigorating activity and insight within the real estate sector.