China’s secondary property sales surge after policy incentives, as buyers eschew new flats
- Secondary-market sales in Beijing, Shanghai and Shenzhen hit a 14-month high in June, but new home sales slumped further on delivery angst
China’s secondary housing market showed signs of recovery as sales in major cities jumped to a 14-month high following supportive policy measures. But the primary market remains weak amid buyer caution about indebted developers’ ability to deliver homes.
Transactions of pre-owned homes in 14 tracked Chinese cities rose 11.2 per cent month on month and 27.9 per cent year on year to 119,470 units in June, the highest since May 2023, according to a report on Wednesday from Zhuge Real Estate Data Research Centre.
The positive figures come six weeks after China announced a historic rescue plan for the beleaguered sector, including a 300 billion yuan (US$41.3 billion) relending facility to help local governments buy unsold homes from distressed developers to clear excess inventory.
However, a report from China Index Academy on Monday showed that the volume of new home sales in 100 cities for the first half of the year fell 40 per cent year on year. Transaction volume in June dropped 20 per cent compared with the same period in 2023, although the decline narrowed by 10 percentage points versus May.
Three tier-one cities – Beijing, Shanghai and Shenzhen – saw rebounds in the secondary market in June, according to Zhuge.
