Tianjin’s real estate market showed signs of recovery in May, with new home sales reaching 620,000 square meters, a 19% month-on-month increase, marking the second-highest monthly volume this year. The rebound was driven by a combination of favorable policies and a wave of new project launches.
Policy Tailwinds Boost Market Sentiment
The market recovery was significantly supported by recent policy adjustments, including interest rate cuts for both commercial loans and housing provident fund loans. The commercial loan rate saw its first reduction this year, while the housing provident fund rate hit a historic low. These measures helped stabilize the market after a decline in April.
Tianjin has implemented a series of policies to stimulate demand, including the removal of home purchase restrictions, reduced down payment requirements, and optimized mortgage policies. The city also abolished price caps on new homes and eliminated the distinction between ordinary and non-ordinary housing, further boosting market activity.
New Projects Drive Sales Momentum
Several high-profile new projects entered the market in May, generating strong sales. Developments such as Xinda Jindi Zhongshan Yin, Nongken Hanzhang Lanyue, and Jindi Qingfeng Shang recorded impressive sales figures, with some projects securing hundreds of millions of yuan in pre-sales on their opening day.
Notably, Jindi Qingfeng Shang led the pack with 327 million yuan in first-day sales, while Xinda Jindi Zhongshan Yin and Jindi Yongyang Yin also performed strongly. These new projects contributed significantly to the overall sales rebound.
Regional Performance Highlights
Among Tianjin’s 16 administrative districts, 12 saw month-on-month sales growth, with Hebei District posting the highest increase at 73%. However, due to its historically low base, Hebei’s total sales volume remained modest compared to other districts.
Binhai New Area, Wuqing, and Jinnan maintained their positions as the top three districts by sales volume, while Hedong District surged ahead to become the top-performing urban core district, surpassing Hexi in sales.
Price Trends and Market Dynamics
Despite the sales rebound, the citywide average new home price declined by 4% month-on-month to 17,992 yuan per square meter. However, price movements varied across districts:
Hedong District led price growth in the urban core, with a 7.6% increase, driven by premium projects such as Jintie Geduo Luoning Huayuan and Chengdong Dongfang Zichen.
Dongli District saw a 9.4% price surge, largely due to strong sales at the Shangdong Jinmao Xiaotang project.
Ninghe District recorded the highest price growth at 10.8%, though it remained the city’s most affordable area with an average price below 10,000 yuan per square meter.
Supply Surge and Future Outlook
New home supply in May jumped 33% month-on-month to 760,000 square meters, the highest level in over six months. With several major projects set to launch in June and a planned land auction for 20 prime plots, market activity is expected to remain strong in the coming months.
Industry analysts predict that second-quarter sales will surpass the first quarter, supported by continued policy easing and an influx of high-quality new developments.
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