The secondary housing market in several major Chinese cities recorded a notable rebound in home sales during January, signaling early signs of stabilization in the real estate sector despite the broader market slowdown and the typically quiet seasonal period.
In Shenzhen, sales rose to their highest level in ten months, posting a 46% year-on-year increase. Beijing also recorded annual growth of 21% despite a slight month-on-month decline, while Shanghai achieved its strongest January sales in five years, with a 24% year-on-year rise.
Analysts believe this improvement reflects a correction phase following years of price declines, supported by improving affordability indicators. However, they stress that achieving full stability will require greater transparency and stronger confidence in household incomes and the labor market.
Meanwhile, housing supply declined in Beijing and Shanghai as property listings fell, with some owners opting to wait or rent out their units instead of cutting prices. Nevertheless, inventory levels remain high, and price trends continue to vary across different areas.
