China’s First-tier Property Markets Stabilise with New Policy Support and Rising Transactions

According to official press releases from Guangzhou municipal authorities, China’s four first-tier cities are witnessing a steady recovery in residential property markets, featuring stabilising prices, optimised market structure and declining housing inventory. Targeted policy upgrades rolled out in late April have further boosted market activity across Guangzhou and Shenzhen, forming a solid foundation for sustained sector revival.

Official transaction data shows tangible market improvements in the first four months of the year. Guangzhou’s new commercial residential online signing area reached 3.154 million square metres, marking a 9.2 percent year-on-year increase. The city’s new home price monthly index stood at 100.3 in March and 100.1 in April, while the second-hand housing price index maintained 100.2 for two consecutive months, reflecting continuous and moderate price recovery and stable market sentiment.

National Bureau of Statistics data confirms the overall warming trend across first-tier cities. In April, new residential property prices in first-tier cities rose 0.1 percent month-on-month, and secondary housing prices climbed 0.4 percent month-on-month. Market vitality continued to rise in May. Research data from China Index Academy shows that between May 1 and May 24, Beijing and Shanghai’s second-hand home transaction volumes surged 15 percent and 29 percent year-on-year respectively. Shanghai set a new five-year daily transaction record with 1,664 online signed deals on May 10, surpassing its previous high recorded in April.

New policy packages have driven marked market improvements in Guangzhou and Shenzhen. Guangzhou unveiled the new property policy package known as the “Eight Measures” on April 30, covering consumption stimulation, inventory optimisation, supply upgrading and expectation stabilisation. Since May, key indicators of Guangzhou’s property market have improved significantly. Weekly visitor numbers, subscription volumes and online signing volumes of major new residential projects have risen 26.9 percent, 36.9 percent and 11.4 percent month-on-month. The weekly second-hand housing signing volume increased 9.3 percent month-on-month, while new second-hand property listings dropped 16.7 percent year-on-year.

Shenzhen released optimised property regulation policies on April 29 to adjust housing purchase restrictions. Its second-hand home transaction volume achieved a 15 percent year-on-year growth in the first three weeks of May. Across first-tier cities, affordable small-sized and low-priced residential units dominate current transactions, demonstrating strong demand rigidity from first-time buyers. Market consumption momentum is set to expand to larger and higher-value properties to fuel further recovery.

First-tier cities will continue to launch refined regulatory measures to consolidate market stability. Guangzhou has launched a new “sell old, buy new” pilot programme operated by state-owned enterprises until December 31, 2026. The programme adopts market-oriented operations to purchase second-hand residential properties within Guangzhou’s inner ring road, with a total price below 3 million yuan and a floor area under 70 square metres.

The initiative aims to renovate aged residential assets to boost rental housing supply, supplement government-subsidised housing resources and smooth the housing replacement cycle for urban residents. Similar state-led second-hand housing acquisition pilots have been launched in multiple districts of Shanghai. Such market-oriented operations help stabilise residential asset valuation, strengthen market confidence and support the long-term healthy development of the urban real estate sector.