Secondary Transactions Hit 18.88 Million SQM in July; Secondary Homes Overtake New Builds for First Time
China's 13 major cities recorded 18.88 million square meters of secondary home transactions in July 2026, according to National Bureau of Statistics data released August 17, representing a 10.2 percent year-over-year increase and confirming the structural shift toward the secondary market. Nationally, secondary homes accounted for 50.4 percent of all residential transactions in the first half of 2026 — the first time in history that secondhand homes have overtaken new builds in market share.
Across 18 provinces and municipalities, including Beijing, Shanghai, Jiangsu, and Guangdong, secondary home transactions exceeded new home transactions in the first half of 2026. In Beijing, Shanghai, Zhengzhou, and other major cities, July secondary transactions hit the highest level in five years. In Shenzhen, secondary transactions climbed 15 percent year-over-year in the first half of August, the best August performance in six years.
New Home vs. Secondary: July 2026 Transaction Data
| Market Segment | July 2026 Volume | YoY Change | Notes |
|---|---|---|---|
| 13-City Secondary Transactions | 18.88 million sqm | +10.2% YoY | NBS data, August 2026 |
| 36-City New Home Sales (Aug 8-14 weekly) | 12.21 million sqm | -13.6% YoY weekly | Weekly data; down 9.4% YTD |
| 15-City Secondary Sales (Aug 8-14 weekly) | 14.93 million sqm | +6.6% YoY weekly | Weekly data; up 6.4% YTD |
| National Secondary Share (H1 2026) | 50.4% | First time exceeds new builds | Historic structural shift |
Source: National Bureau of Statistics; NBS housing ministry data, August 2026.
Why Secondary Homes Are Winning
Multiple factors are driving the structural shift. First, secondary homes are simply more affordable — they are typically priced below comparable new homes after years of price adjustments. Second, the transaction infrastructure has improved dramatically: digital platforms, professional agents, and transparent pricing have reduced information asymmetry. Third, completed inventory from developers has increased, giving buyers more choices in the secondary market.
Implications for the Broader Market
The secondary market's rise creates both opportunities and challenges. For buyers, more choice and lower prices are welcome. For developers, the shift intensifies competition with existing inventory and complicates government efforts to stabilize new home prices and clear developer inventory. For policymakers, the secondary market's dominance means that property stabilization depends as much on二手房 market dynamics as on new construction policy.