Shanghai Leads Property Market Resilience during CNY Holiday

Shanghai's real estate market emerged as a notable bright spot during the Chinese New Year holiday, recording the highest new home transaction volume among China's first-tier cities even as the broader national market remained quiet.

During the holiday period from February 15 to 23, Shanghai saw 13,600 square meters of new homes sold, a significant increase compared to last year's Spring Festival, according to data from the China Index Academy.

The city's strong performance defied the national trend, where transaction volumes across 21 key cities remained flat year-on-year. Analysts attributed Shanghai's resilience to supportive policies introduced before the holiday and sustained promotional efforts by developers.

"Shanghai benefited from a rebound in market activity in January and the launch of a pilot program in three districts to acquire existing homes for affordable rental housing in February," said a market analyst. "These factors helped restore confidence before the holiday."

Many developers in Shanghai kept their sales offices open throughout the nine-day break, maintaining the same level of discounts and incentives seen in January. This "Spring Festival Not Closing" strategy helped capture demand from homebuyers who stayed in the city.

In contrast, the national market entered a typical "holiday mode." With a record 520 million domestic trips made during the extended break–up 25.3 percent from 2019–potential buyers were largely occupied with travel and family reunions.

Looking ahead, industry insiders remain optimistic about a post-holiday rebound, often referred to as the "Little Spring" in March.

"With the holiday effects fading and developers gearing up for new launches, we expect a supply peak in March," said Cao Jingjing, general manager of the Index Research Department at China Index Academy. "2026 is seen as a crucial year for the real estate market to stabilize, and the upcoming 'Two Sessions' in March will likely bring further clarity on policy directions."