MySteel: China’s housing market showed signs of recovery during the Chinese New Year (CNY) holiday, and the average daily new home transactions, measured by floor area, in 28 major cities increased by 8% year on year from January 28 to February 4, according to data released by the China Index Academy, a leading real estate research firm in China.
Among the four first-tier cities, Guangzhou saw a 47% increase in new home transactions, while Beijing recorded a slight 5% increase, the data showed.
According to data compiled by Haitong Securities, the total new home transactions in 30 Chinese cities reached 47,000 square metres from 28 January to 3 February, marking a 30.6% increase from the same holiday period last year (10-16 February, 2024).
First- and second-tier cities saw notable rebounds, with first-tier cities recording a total transaction area of 4,800 square meters, surging 48.2% year over year, and second-tier cities reaching 36,100 square metres, jumping 93.35% year over year, according to Haitong Securities’ data.
The second-hand home market mirrored the upward trends, with the total transactions in China’s 18 major cities reached 6,800 square meters from 28 January to 3 February, surging 135.3% year over year, and among them, second-tier cities accounted for 6,200 square meters, 5.3 times the volume a year earlier, according to Haitong Securities.
The Shenzhen Housing and Construction Bureau described January 2025 as a “good start” for the city’s housing market. In January, 5,090 new homes were sold, marking a 97.3% year-over-year increase, while 4,554 second-hand homes were sold, a 31.5% increase from the previous year, according to the bureau’s data.
In terms of home prices, the month-over-month growth of new home prices in 100 cities narrowed, while the decline in second-hand home prices had continued to narrow for the sixth consecutive month, according to the China Index Academy.
The land auction market also showed positive signs, with the land auctions for core plots in Beijing, Shanghai, Shenzhen and Hangzhou continuing to see high demand, leading to higher premiums. As a result, the residential land sales revenue in 300 Chinese cities saw a year-over-year increase.
Industry sentiment for the post-CNY market is optimistic. In Shenzhen, 24 new residential projects are expected to be launched in the first quarter of 2025, with a total floor area of 891,000 square meters.
According to a representative from the Shenzhen Real Estate Association, many hot-selling projects from 2024 will release follow-up products, and several high-quality new projects will soon enter the market, with sales expected to see a “small spring” rebound after the CNY holiday.
“The market has made an excellent start in 2025,” said Yan Yuejin, deputy director of Shanghai E-House Real Estate Research Institute.
“The performance in the fourth quarter of 2025, with cities halting the decline and stabilising, shows a continuation of the positive development trend in the real estate market since last year, which is comprehensive and sustainable.”
Note: This article has been written in accordance with an article exchange agreement between MySteel Global and BigMint.
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