{"id":42151,"date":"2025-06-10T12:37:16","date_gmt":"2025-06-10T05:37:16","guid":{"rendered":"https:\/\/www.asiapropertyawards.com\/?p=42151"},"modified":"2025-06-10T12:40:33","modified_gmt":"2025-06-10T05:40:33","slug":"core-cities-lead-chinas-housing-recovery-amid-shifting-buyer-sentiment-and-policy-support","status":"publish","type":"post","link":"https:\/\/www.asiapropertyawards.com\/en\/core-cities-lead-chinas-housing-recovery-amid-shifting-buyer-sentiment-and-policy-support\/","title":{"rendered":"Core cities lead China\u2019s housing recovery amid shifting buyer sentiment and policy support"},"content":{"rendered":"

Judges from the <\/span>PropertyGuru<\/span> Asia Property Awards weigh in on market stabilisation through 2025<\/span><\/span>\u00a0<\/span><\/p>\n

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Potential buyers are more likely to engage in transactions when they feel confident about the market and its conditions. hxdyl\/Shutterstock<\/figcaption><\/figure>\n

Early signs of recovery in China’s real estate sector, especially in tier-one cities, are stirring cautious optimism. Market watchers point to a convergence of buyer sentiment and government policy as crucial drivers of stability and growth heading into 2025. But progress is not even across regions.<\/span>\u00a0<\/span><\/p>\n

“Buyer sentiment and government policy remain central to the stability of China\u2019s residential real estate market in 2025,” said<\/span> Ken Ip, Chairman of the Asia MarTech Society and Chairperson of the PropertyGuru Asia Property Awards (Mainland China) Judging Panel.<\/span> “Government measures\u2014such as mortgage rate cuts, funding support, and targeted incentives\u2014have helped revive confidence, particularly in tier-one cities, where recovery is more visible.”<\/span>\u00a0<\/span><\/p>\n

According to <\/span>South China Morning Post<\/a>, China\u2019s core cities like Shanghai and Beijing are showing strong signs of market activity, largely due to policy-led recoveries. In contrast, tier-three and tier-four cities continue to experience price drops and oversupply.<\/span>\u00a0<\/span><\/p>\n

“Sentiment is improving, but it\u2019s not yet uniform,” Ip added. “While wealthier buyers are re-entering the market, many still seek greater certainty in pricing trends and future demand. The next phase of stability depends on whether policy momentum aligns with sustained consumer confidence, ensuring recovery spreads beyond core cities.”<\/span>\u00a0<\/span><\/p>\n

Understanding the mechanics of recovery<\/span><\/b>\u00a0<\/span><\/p>\n

James Woo, Executive Director and Co-Head of Valuation China at Colliers and a fellow\u00a0PropertyGuru Asia Property Awards (Mainland China)\u00a0judge, outlined the recovery with precision. <\/span><\/p>\n

\u201cPositive buyer sentiment can significantly influence demand. When potential buyers feel confident about the market’s trajectory and perceive favourable conditions, they are more likely to engage in transactions. This confidence can be bolstered by signs of economic stability and growth, as well as by improved access to financing.\u201d<\/span>\u00a0<\/span><\/p>\n

In May 2025<\/span>, new home prices rose 0.30 percent month-on-month nationwide, revealed <\/span>China.org.cn<\/span><\/a>. Shanghai saw a 1.47 percent\u00a0increase, while Guangzhou followed with a 1.25 percent\u00a0uptick. Secondary transactions in Shanghai also grew 14 percent\u00a0year-on-year, sustaining momentum for eight consecutive months.<\/span>\u00a0<\/span><\/p>\n

Anecdotal evidence supports this upward trend. Woo noted, “Shanghai\u2019s Runyun Jinmao Mansion sold CNY1.45 billion (USD201 million)\u00a0in just 36 minutes; nine projects achieved same-day sellouts.”<\/span>\u00a0<\/span><\/p>\n

Beijing, too, remains resilient. Though secondary transactions dipped 8.3 percent month-on-month, they still reached 14,277 units in May.<\/span>\u00a0<\/span><\/p>\n

A dual-fronted policy approach<\/span><\/b>\u00a0<\/span><\/p>\n

Woo pointed to the twin levers of demand and supply shaping the recovery. On the demand side, <\/span>Reuters<\/span><\/a> reported mortgage rate cuts pushing first-home buyer rates below three percent, following a cut in the LPR to <\/span>3.50 percent.<\/span>\u00a0<\/span><\/p>\n

To tackle inventory, local governments in<\/span> Guangzhou, Chongqing, and Kunming introduced housing voucher pilots and trade-in programmes to encourage upgrades. Meanwhile, on the supply side, more than CNY700 billion in special bonds was allocated for land acquisition, while “whitelisted” projects received CNY8.54 trillion in developer financing.<\/span>\u00a0<\/span><\/p>\n

Tier-one cities are also piloting urban renewal projects. <\/span>ECNS<\/span><\/a> added that <\/span>Shanghai and Shenzhen are targeting 1 million units through urban village conversion to address housing supply while improving affordability.<\/span>\u00a0<\/span><\/p>\n

Celebrating innovation and resilience<\/span><\/b>\u00a0<\/span><\/p>\n

Recognising the projects that are leading this evolution, <\/span>the <\/span>19th PropertyGuru Asia Property Awards Grand Final 2024<\/span><\/a>\u00a0honoured several developers from Mainland China, Hong Kong, and Macau:<\/span>\u00a0<\/span><\/p>\n