Surging by over 100%! Second-hand houses in Shanghai and Shenzhen are selling like hotcakes!

Shanghai and Shenzhen's Second-hand Housing Data Hit New Highs!

According to the Shanghai Housing Management Bureau and Wind data, on October 13th, the number of second-hand housing transactions in Shanghai was 1334 units, an increase of 147% compared to the same period last month and 108% compared to the same period last year, reaching a new high since September last year.

According to the Beike Research Institute in Shenzhen, the volume of second-hand housing transactions at Beike's cooperative stores in Shenzhen on October 13th hit the highest record in nearly four years. Specifically, from October 1st to 13th, the daily average signing volume of second-hand houses in Shenzhen increased by 182% compared to September. Compared to the active months of March, May, and June this year, the increase is also very significant, at 86%, 145%, and 107% respectively.

Significant Increase in Second-hand Housing Transactions in Shanghai and Shenzhen

On September 29th, Shanghai introduced the "Shanghai Seven Regulations," adjusting the housing purchase restriction policy, and the real estate policy effect continued to be released. Since October, second-hand housing transactions in Shanghai have remained at a high level. Wind data shows that last week (October 7th to October 13th), a total of 6412 second-hand houses were transacted in Shanghai, an increase of 197% compared to the previous period.

As of October 13th, the number of second-hand housing transactions in Shanghai in October was 7949 units, with a daily average transaction volume of over 600 units.

After the new real estate policy on "9·29," the sentiment in the Shenzhen real estate market also showed signs of recovery.

The latest data released by the Shenzhen Zhongyuan Research Center shows that last week, a total of 329 new residential units were transacted in Shenzhen, an increase of 70.5% compared to the previous period. A total of 1463 second-hand residential units were transacted, an increase of 776% compared to the previous period. In terms of new house subscriptions, according to data from the Leyoujia Research Center, as of October 13th, the subscription volume of new residential units in Shenzhen this month has reached 4418 units, indicating that the real estate market's "Golden October" is still ongoing, with the continued impact of the new policies.

Zou Shaowei, a senior researcher at the Shenzhen Zhongyuan Research Center, believes that after the new policy on "9·29," the new housing market has changed its past decline, especially in projects with relatively high regional cost performance, the pace of clearance has significantly accelerated. Of course, this is also due to developers making concessions in prices, maintaining the trend of trading volume for price.

Significant Boost in Real Estate Confidence

On September 29th, the Shanghai Housing and Urban-Rural Development Commission and other departments issued the "Notice on Further Optimizing the City's Real Estate Market Policy Measures" (referred to as the "Shanghai Seven Regulations"), proposing that for non-local household residents and single individuals purchasing housing outside the outer ring road, the years of social insurance or personal income tax payment required for purchasing housing will be adjusted to one year or more before the date of purchase. Non-local household residents holding the "Shanghai Residence Permit" and meeting the standard score points, and having paid social insurance or personal income tax in the city for three years or more, will enjoy the same housing purchase treatment as local residents in terms of the number of housing units purchased After the implementation of the "Seven Regulations" in Shanghai, confidence in the Shanghai property market has been significantly boosted. According to data from the Institute of Homelink, statistics from over 40 agent properties show that within the 7 days of the National Day holiday, the number of visitors increased by 130% compared to the average number of visitors in September, mainly due to the increased activity of the newly qualified homebuyers.

Furthermore, the base of homebuyers has also significantly increased. According to estimates by the Institute of Homelink, the "Seven Regulations" have added 34,000 housing tickets. Among them, the non-Shanghai residents outside the outer ring road have seen their purchase restriction period reduced from 3 years to 1 year, adding 25,000 qualifications for single homebuyers from outside the city.

The "Seven Regulations" have also optimized housing credit policies, further reducing the interest expenses of homebuyers. Among them, the minimum down payment ratio for the first commercial individual housing loan has been adjusted to not less than 15%. For the second commercial individual housing loan, the minimum down payment ratio has been adjusted to not less than 25%; the minimum down payment ratio for the second housing loan in differentiated policy areas has been adjusted to not less than 20%. The corresponding minimum down payment ratio for the second housing loan using housing provident fund has been adjusted.

On September 29th, Shenzhen optimized its property market policies, introducing measures including optimizing zoning housing purchase restrictions, lifting restrictions on the transfer of commercial housing and serviced apartments, streamlining the price filing process for commercial housing and serviced apartments, adjusting the exemption period for individual housing transfer value-added tax, and optimizing individual housing loan policies.

In the new property policies in Shenzhen, the "cancellation of sales restrictions" has allowed many second-hand properties that were originally restricted to be listed, leading to a significant increase in the number of second-hand listings. According to monitoring by the Shenzhen Homelink Research Institute, as of October 13th, the number of second-hand listings in Shenzhen has increased by approximately 6,700 compared to before the new policy (September 28th). The average price of newly listed properties is 71,000 yuan per square meter, a slight increase of 1.4% compared to before, mainly due to an increase in the listing volume of mid-to-high-end properties, leading to a structural increase in the average listing price. Looking at different districts, 55 districts have seen an increase in average listing price compared to before, while 36 districts have seen a decrease.

Song Hongwei, research director at the Institute of Homelink, stated that another important impact of the new property policies is the cumulative effect of policies. Lowering the threshold for home purchases and reducing mortgage costs have stimulated the entry of rigid demand groups into the market. If combined with the decrease in existing loan interest rates, the policy effect will further extend to the improvement group.

Yan Yuejin, deputy director of the E-House Research Institute, stated that the "Seven Regulations" in Shanghai actively responded to public concerns, changed market expectations, and played a consolidating role in the continuous improvement of the Shanghai property market. After the National Day holiday, the pace of optimizing housing policies across the country will accelerate, and various new policies will create a better foundation for the development of the real estate market.

Authors: Chen Yukang, Wu Jiaming, Source: Securities Times, Original Title: "Surge by Over 100%! Second-hand Houses in Shanghai and Shenzhen Are Selling Like Hotcakes!"