Shanghai's home sales split over holiday as policy easing steadies demand

by WANG Tingting

Shanghais's housing market showed mixed trends during China's National Day "Golden Week," as policy easing kept new-home demand steady while second-hand sales cooled. The holiday — which also covered the Mid-Autumn Festival — falls within China's traditional "Golden September, Silver October" sales season, when developers typically launch new projects and homebuying activity peaks.

The city sold 909 new homes between Oct. 1 and 7, up 78.9% from a year earlier, while second-hand transactions fell by about two-thirds to 780 units, according to Tospur Research, a Shanghai-based real estate consultancy. Analysts said demand for new homes was supported by households upgrading to larger or better units, while first-time buyers opted for the cheaper resale market.

Shanghai's housing split comes amid a prolonged national property downturn, as Beijing eases curbs to revive confidence in the debt-laden sector. Local measures align with the central government's broader efforts to stabilize the market.

The city relaxed home-purchase limits in late August, allowing families to buy multiple properties beyond the Outer Ring Road — the boundary separating central districts from the suburbs — and extending eligibility to single adults. The policy helped draw more buyers to outer districts such as Fengxian and Songjiang, on Shanghai's southern and western fringes, where several new projects recorded solid holiday sales.

In late September, Shanghai also introduced a "Good Housing" framework — new local standards aimed at improving design, comfort and community amenities. The policy encourages developers to build higher ceilings, larger balconies and mixed-use public areas, shifting the focus from short-term sales to long-term livability.

Developers stepped up launches ahead of the holiday after new-home sales in September rose 23% from August to 970,000 square meters, according to China Index Academy. Projects in Yangpu, Pudong and Baoshan posted firm sales, with both luxury and mid-tier homes attracting steady demand. Three of the top 10 projects were priced above 100,000 yuan (about US$1,300 per square foot) and four below 60,000 yuan.

By contrast, resale activity cooled as last year's high base faded. Data from Anjuke, a Chinese real estate listings site, showed an average of 111 deals a day — down 63% from 2024 but nearly double the same period in 2023.

Analysts expect the "Silver October" trend to continue, with developers now competing on product quality and delivery. They say that demand remains concentrated in top-tier cities and higher-quality housing, underscoring a still-fragmented market.