Shanghai Used-Home Sales Top 20,000 for Sixth Straight Month as Policy Boost Lifts Market

Sales of new and existing homes in Shanghai totaled 2.21 million square meters, or about 24,300 units, in August, up 2 percent from July and 15 percent from a year earlier, according to city housing data.

The existing-home market recorded 20,700 transactions, a rise of 1 percent month on month and 18 percent year on year. That marked the sixth consecutive month above 20,000 units. Since last November, monthly sales have exceeded 20,000 in every month except February, when the Spring Festival holiday reduced activity, Jiefang Daily reported.

New-home sales reached 470,000 square meters in August, increasing 10 percent both from the previous month and from a year earlier.

The city announced eight housing measures on August 20, with the package taking effect the following day. The measures were designed to improve the chain of transactions in which residents sell an existing home before buying another, while offering targeted mortgage and purchase support for homes beyond the Outer Ring Road.

After the measures were announced, average daily visits to new-home projects rose 15 percent from the pre-policy level. Daily deposit contracts increased 90 percent and average daily transaction area at projects on sale rose 48 percent as reservations were converted into online registrations, the data showed.

Average daily existing-home transactions reached 727 after the announcement, 14 percent above the earlier level. On August 29, 1,131 existing homes changed hands, the strongest weekend result in nearly two months. Prices in residential communities with consecutive transactions edged up 0.1 percent from July, data from Shanghai's real estate monitoring platform showed.

Brokerages also reported more activity. Major agencies said prospective buyer registrations rose 10 percent, viewings increased 22 percent and brokerage contracts grew by about 20 percent compared with the July-August average before the measures were introduced.

Some sellers in areas beyond the Outer Ring Road have tentatively raised asking prices by 2 to 3 percent, or roughly 50,000 yuan (US$7,000) to 100,000 yuan, according to agents interviewed by Jiefang Daily. The changes were described as cautious adjustments rather than evidence of a broad price rebound.

Buyer interest has also shifted toward larger and newer homes in outlying districts. Li Gen, head of the Shanghai Lianjia Research Institute, said demand from households seeking housing upgrades had accelerated, with three-bedroom homes and units of 90 to 120 square meters accounting for a growing share of transactions.

Among buyers of new homes beyond the Outer Ring Road after the measures took effect, about 195 qualified for subsidies tied to selling an existing home within the previous year. They represented 23 percent of new-home transactions in those areas during the period. Sixty-six had sold homes inside the Outer Ring Road and were eligible for an additional 30,000-yuan subsidy.

Transactions beyond the Outer Ring Road increased after the announcement, with new-home sales up 20 percent and existing-home sales up 15 percent from the pre-policy period. Some projects priced at 5 million yuan to 7 million yuan saw average daily visits rise about 50 percent and daily sales roughly double.