This year’s May Day holiday marked a continued recovery in China’s real estate market, particularly in first- and second-tier cities. The rebound was driven by a series of favorable policies and a growing influx of “quality homes” into the market.
In Beijing, a newly developed property offering three- and four-bedroom apartments saw a significant increase in homebuyer interest during the holiday, with many looking to upgrade their living conditions. According to Wang Haifeng, the marketing and sales manager for the project, foot traffic at the property ranged from 400 to 500 people daily, with approximately 10 deals being closed each day.
The recent implementation of the Residential Building Code has added momentum to the market. This policy, mentioned for the first time in this year’s Government Work Report, emphasizes the importance of safe, comfortable, eco-friendly, and smart homes. It has become a key selling point for developers. Wang highlighted some of the new standards, including mandatory floor-to-ceiling heights of at least three meters, the addition of balconies for extra usable space, and the incorporation of central air conditioning, fresh air systems, and underfloor heating in residential buildings.
In Shanghai, the real estate market also saw strong performance. A total of 20,700 second-hand homes were sold in April, marking a 32% year-on-year increase and the highest sales figure since 2022. Some properties, seeing strong sales, even released additional units during the May Day holiday.
Meanwhile, in Guangzhou, the Huangpu District saw significant sales activity. From May 1 to 2, 47 properties under construction or on sale attracted more than 2,000 visitors, with purchases up by 37% compared to the same period last year. In neighboring Shenzhen, the “May Day Quality Homes Festival” drew 40,000 visitors on its opening day, and a property in Nanshan District sold 90% of its units.
In Wuhan, central China, a major real estate agency saw a 25% increase in visitors compared to last year, with over 8,000 people attending in the first three days of the holiday. Wang Qi, a real estate agent, reported that showings and inquiries had doubled since April 30. On average, each agent showed properties to two to three groups of potential buyers daily.
Local governments have also been introducing policies to stimulate the market. In Hefei, Anhui Province, the city has enhanced support for housing provident funds to purchase government-subsidized homes and increased loan amounts. In Suzhou, Jiangsu Province, loan limits have been relaxed for families with multiple children and those buying upgraded homes. Qingdao, Shandong Province, has introduced 12 new policies, including subsidies for homebuyers, low monthly payment loan options, and a housing trade-in scheme.
Li Yujia, chief researcher at the Guangdong Housing Policy Research Center, noted that transaction volumes for both new and second-hand homes in key cities have shown year-on-year growth for two consecutive quarters. Although the growth rate in the first quarter of this year was slightly lower than the fourth quarter of 2024, the trend of market stabilization is evident.
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