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In April, second-hand home sales in Shanghai hit a nearly five-year high after the city eased restrictions for residents who are not registered locally, along with other supportive measures.
Last month, approximately 31,215 used homes changed hands in Shanghai, marking a 176% increase from February and a 6% rise compared to the same period last year, according to government data. The last time sales surpassed 30,000 was in March 2021, when around 39,400 units were sold.
On February 25, Shanghai introduced a new policy to further relax home purchase restrictions for non-residents, allowing individuals with residence permits for over five years to buy a property. The policy also significantly increased the maximum housing provident fund loan amount and expanded property tax exemption eligibility.
The recent data indicates a renewed sense of market confidence, largely driven by the new policies. Easing purchase restrictions and reducing transaction costs stimulated interest from first-time buyers and those upgrading their homes, propelling the second-hand market into a phase of healthy growth in both volume and prices, according to the head of a local real estate research institute.
Additionally, home inquiries increased by 28% last month compared to January, while the price index grew by 1% month-over-month. The typical transaction duration also fell to 39 days from 49 days earlier this year.
The available listings of second-hand homes continued to decline, with around 326,000 units (including duplicate listings) on the market as of March 30, representing a decrease of about 16,000 since the end of January, based on data from a major real estate platform.
Apart from the new policies, a pilot program launched in early February allowing state-owned enterprises to acquire pre-owned homes and convert them into affordable rentals has also helped stabilize market expectations, said a senior executive at a local real estate research institute.
Analysts observed that the proportion of affordable homes priced below CNY3 million (approximately USD435,690) outside the Inner Ring Road has increased. Buyers with genuine demand are more eager to purchase, negotiation margins are tightening, and this trend is laying the groundwork for future price stability.
Overall, the Shanghai real estate market is beginning to develop a positive policy-driven cycle, with support from government measures fueling the recovery. The second-hand segment is leading this resurgence, followed closely by new-home sales, a trend expected to continue into this month.
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