Mainland Housing Prices | In March, the decline in second-hand home prices across 100 cities in Mainland China continued to narrow

The China Real Estate Research Institute report shows that in March, China’s real estate market exhibited differentiated characteristics. In core cities, the secondhand housing market saw a slight “spring-like” upswing. The average price of secondhand homes in 100 cities fell by 0.34% month-on-month, with the decline narrowing for the third consecutive month.

In March, the average price of secondhand homes in 100 cities was 12,792 yuan per square meter (RMB; the same applies below). It fell by 0.34% month-on-month, narrowing by 0.2 percentage points from the previous month, marking the third consecutive month of narrowing declines; the year-on-year decline was 8.55%. Among core cities, the average asking price of secondhand homes in Shanghai rose month-on-month, ending the prior 33-month streak of declines. In that month, sales exceeded 30,000 units, reaching a new high in nearly 5 years, with both price and volume rising.

The report points out that after the Spring Festival, there was some recovery in the core cities’ property markets. Secondhand home transactions continued to be stronger than new home sales. Quality land parcels could still fetch relatively high premiums, but the overall market remains in the process of bottoming out. The sustainability of the core cities’ recovery in April is still subject to testing. If the level of heat can be sustained, it will help improve expectations and lay a better foundation for the stable operation of the market throughout the year.

Among core cities, aside from Shanghai, Hefei’s average asking price for secondhand homes in March also rose month-on-month by 0.03%, the first increase since May 2023. Beijing’s secondhand home prices fell month-on-month by 0.31%, with the decline narrowing by 0.35 percentage points. As of the 30th, the transaction volume of secondhand homes had already exceeded 18,000 units, and the market warmed somewhat.

The report shows that in March, real estate companies increased the supply of new listings. In cities such as Hangzhou, Shanghai, and Guangzhou, high-end improvement housing projects were launched, driving the 100-city new home price index to rise structurally month-on-month. The average price of newly built homes in 100 cities was 17,115 yuan per square meter, up 0.05% month-on-month and up 2.24% year-on-year.

For rental housing, after the Spring Festival, the return-to-work wave drove a concentrated release of rental demand. In 50 cities, rent was 34 yuan per square meter per month, up 0.09% month-on-month, and down 3.65% year-on-year.