Fueled by favorable policies, China’s residential real estate market witnessed an uptick in inquiries and viewings over the first three days of the National Day holiday. Experts have predicted a country-wide market revival marked by increased transactions, with first-tier cities leading the trend. They said recent policy adjustments that eased restrictions on leveraging, along with previous measures such as ensuring the delivery of pre-sale properties and the CNY300 billion loan to state-owned enterprises for affordable housing projects, are crucial for stabilizing the market. However, further support from the central bank may still be required to sustain the momentum. “Our phones rang non-stop the day new policies were announced, as they captured the attention of numerous potential homebuyers,” said Wu Libin, Sales Manager at 5i5j in Beijing, adding that inquiries are still coming in. Another sales manager in Beijing E-Town told Beijing News that transactions worth CNY125 million had been completed and more than 100 families had visited the development area since Beijing announced its policies on September 30.
There was a rush of inquiries elsewhere too. In Guangzhou, Guangdong province, a housing sales center in Liwan district extended its office hours and stayed open throughout the night following Guangzhou’s policy announcement on September 29. By noon the next day, the number of visitors to the sales center had surged by 200% compared to usual levels. A staff member said that while some buyers jumped at the chance to buy following the policy announcement, others had opted for a wait-and-see approach. Shenzhen in Guangdong province and Shanghai also reported a rise in the number of visitors to various sales offices. Latest data from the research center of realty agency Leyoujia revealed a nearly 40% surge in pre-owned home transactions at Leyoujia sales centers on September 30 compared to the previous day – the highest since February 2021. New home transactions also hit a two-year high. Multiple sales offices in Shanghai were fully booked for house viewings last week.
Shanghai, Guangzhou and Shenzhen all made significant policy changes. Shanghai streamlined its purchase restrictions, notably reducing the threshold and initial payment costs. Among first-tier cities, Guangzhou was the first to completely remove home purchase restrictions. Beijing announced measures such as further reducing interest rates on existing housing loans and lowering the minimum down payment for personal housing loans. China’s real estate market is anticipated to witness a wave of transactions in the fourth quarter, the China Daily reports.
