BEIJING, April 28 (Xinhua) -- China's property market, after a period of adjustment, is showing tentative signs of recovery, with transaction volumes in major cities rising in March and month-on-month price declines easing into flat or modest gains, indicating a gradual return of buyer confidence and improving market liquidity.
SIGNS OF REBOUND
Nationwide, 14 of 70 large and medium‑sized cities saw new home price increases in March, four more than in February, while 13 cities saw gains in second-hand home prices, compared with just two the previous month, according to the latest data from the National Bureau of Statistics (NBS).
The rebound is concentrated in first‑tier and hotspot cities. Beijing's second‑hand home registrations hit a 15‑month high of 19,886 in March, while Shanghai posted a five‑year daily record of 1,632 transactions on April 11. Recovery across lower‑tier markets, however, remains varied and heavily dependent on local fundamentals.
Behind this shift lies a series of targeted policy adjustments. In Beijing, restrictions on home purchases by non-registered families were eased in late 2025, while families with two or more children are now allowed to buy an additional home within the Fifth Ring Road, a major ring road in the city.
POLICY ADJUSTMENTS
In Shanghai, the "Shanghai Seven Measures" that took effect in February 2026 shortened the social security payment period required for non-registered residents to buy a home and raised provident fund loan ceilings. According to the China Index Academy, more than 100 cities and counties introduced some 160 property‑related policy adjustments in the first quarter of 2026.
Analysts have noted that altering thresholds in terms of purchase eligibility, which is often tied to the hukou (permanent household residency registration) system, years of local social insurance or residence permit and family size, can expand the pool of eligible buyers and accelerate housing turnover.
The newly mobilized purchasers fall into two clear groups. First-time buyers who were previously constrained by eligibility rules, and qualified households that had delayed trading until the resale market became more liquid, but are now moving quickly to upgrade.
One key policy tool has been the acquisition of existing housing stock for conversion into affordable housing for sale, also known as distribution-oriented affordable housing. This approach addresses a long-standing structural mismatch, as many cities hold large unsold inventories while young migrants and new urban residents struggle to afford homes.
Cities such as Zhengzhou, Lanzhou and Jinan have begun implementing such projects. NBS data showed that by the end of March, the national floor area of unsold commercial housing fell 0.1 percent year on year, the first such decline in 52 months.
Meanwhile, affordable rental housing is being built at a faster pace, targeting new urban residents and young workers. In Jingdezhen, a ceramics hub popular with young entrepreneurs, one university-town project alone will provide 2,372 small, low-rent units. In Hangzhou, 2,190 such units were launched in the first quarter, while Chongqing plans to add 12,000 this year.
Supply‑side management has also grown more granular. Many cities now time land releases to local absorption capacity, pausing new residential land where inventory destocking cycles exceed reasonable thresholds, and prioritizing activation of existing stock over indiscriminate expansion.
"When we put land on the market now, the first thing we look at is whether homes can actually be sold," a local housing official told Xinhua.
Financing channels are being coordinated to keep approved projects moving. Provincial and municipal real‑estate financing coordination mechanisms have been established, along with a "white list" of vetted projects. Commercial banks are being pushed to provide loans to qualified projects "as long as they are eligible." By the end of March, about 1,000 projects had received bank credit lines totaling more than 300 billion yuan (about 43.75 billion U.S. dollars).
SOLIDIFYING GROUND
Beyond policies and financial measures, demand is increasingly supported by a more fundamental driver, which is the integration of industry, population and housing. In Ganzhou, a city in Jiangxi province, the furniture industry alone generated over 290 billion yuan in output in 2025, employing half a million people.
"When industries grow, people come; when people come, housing demand naturally rises," a local official said, adding that the industry-city-people-housing linkage is shaping a more sustainable model, moving away from pure investment-driven growth toward actual living needs.
With the concept of "good housing" gaining traction, China's real estate sector is also pivoting toward quality, with a focus on better layouts, higher usable floor area, better amenities, age-friendly and green design, and smarter communities. These quality upgrades are increasingly emerging as a new engine of demand.
"China's property market is gradually moving away from a one-sided downward trend. This is the result of a combination of factors like sustained policy efforts, emerging economic bright spots, and a sufficiently completed market correction," said Yu Xiaofen, head of the real estate research institute at the Zhejiang University of Technology.
As market expectations steadily improve and long‑term mechanisms are strengthened, the foundations for a healthier, more sustainable and people‑centered property market are gradually being laid, according to analysts. ■
