By love-89.com Reporter: Ji Simin, Pengpai News
With the rollout of several policies ahead of the holiday season, there has been a significant increase in foot traffic and sales volume at residential properties in key cities during the National Day “Golden Week.” As the market gradually stabilizes, developers are changing their pricing strategies, with numerous real estate companies announcing price hikes or the withdrawal of discounts.
Some projects in early October have already recorded sales volumes that exceed the total for September, prompting local governments to showcase their “results.”
Before this year’s National Day holiday, regulatory authorities frequently addressed the real estate sector. From the Politburo’s emphasis on stabilizing the market to the central bank’s interest rate cuts and adjustments to down payment policies, measures taken in major cities like Beijing, Shanghai, Guangzhou, and Shenzhen have collectively bolstered confidence in the real estate market.
The China Index Academy’s monitoring indicates a surge in promotional efforts from real estate companies during the Golden Week, resulting in a notable uptick in both foot traffic and sales compared to the pre-holiday period. The performance during this month’s “silver October” has exceeded expectations.
Data demonstrates that most cities have experienced a marked increase in market activity compared to before the holiday. The average number of sales during the Golden Week in major cities surpassed the total for September, especially in tier-one cities, where enhanced policies have driven significant growth. For instance, the average sales volume in Guangzhou and Shenzhen reached twice the level seen in September, while Beijing and Shanghai also reported increased sales.
The China Index Academy notes that in addition to strong sales performance of quality improvement projects in tier-one cities, many entry-level housing developments saw a marked improvement during this period. In second-tier cities, hot spots like Chengdu and Hangzhou maintained high activity rates, whereas cities like Chongqing relied heavily on significant discounts to stimulate sales.
According to monitoring data from 58 Anjuke, the impact of various policies resulted in a dramatic rise in property searches across regions. In particular, search interest in Shenzhen and Beijing increased by 25% daily during the National Day holiday compared to September, while Guangzhou and Shanghai saw daily increases of over 10%. Across the country, 83 of the top 100 cities experienced increased interest in property searches, with 38 cities showing rises exceeding 10%.
Local housing and urban development departments have been quick to report on the holiday market performance. For example, data from Shenzhen’s housing authority revealed that in the week following the new policy implementation, the market responded positively, with significant increases in new home sales and record highs in secondary home transactions. From October 1 to 7, Shenzhen sold 1,841 newly constructed residential units, marking a staggering 664.14% increase compared to the same period last year. In terms of secondary homes, leading real estate agencies recorded substantial increases in the number of viewings and transactions.
In Wuhan, reports indicated that among 242 key projects available for sale, on-site visits totaled 48,500 during the first week of October, reflecting a 47% increase compared to the previous year’s holiday. The city saw 2,765 properties sold, which is a 113% year-on-year increase.
Chengdu’s real estate data also highlighted impressive activity, with 19,260 groups visiting properties and 1,561 new home transactions during the first week of October—an 81% increase from last year’s National Day holiday.
The China Index Academy predicts that the new policies will continue to yield positive effects, with substantial spikes in holiday sales likely to be reflected in official registration data. October is expected to witness a notable increase in market sales.
In light of this robust market activity, many developers have proactively adjusted their pricing strategies. For example, Midea Real Estate has announced that starting October 8, it will retract a 2% discount on all properties nationwide. They attribute this change to the recent favorable policies from the government that have positively impacted market sentiment.
Midea’s announcement is indicative of a broader trend; several developers have announced similar price increases or the withdrawal of discounts. Reports from the China Real Estate Journal reveal that China Resources Land’s Beijing branch is set to raise prices by 2% from October 8, and China State Construction’s various projects will also see a 2% increase in listed prices.
Signs of upward pricing trends have been evident since early August, with developments in the Chengdu land market leading to price adjustments by developers in response to increased construction costs.
The recent market data suggests that the trend of price increases is spreading. As various projects announce price stability or hikes, it appears to be a deliberate strategy for real estate firms to align with improved demand and consumer confidence.
Industry experts believe that the rhetoric from regulatory bodies about stabilizing the market encompasses both volume and price. Some firms are opting not to increase base prices directly but instead are withdrawing discounts to keep prices relatively stable. They argue that while the market is showing signs of differentiation, with some firms raising prices due to the quality of their projects, others continue to offer meaningful discounts to attract buyers.
Moreover, some industry insiders suggest that the recent announcements regarding price freezes or hikes may primarily serve as marketing strategies aimed at expediting buyer decisions and stabilizing market expectations, thus alleviating concerns about potential price declines. They anticipate that housing prices will gradually stabilize moving forward.