A Remarkable Divergence
In the first half of 2026, China's second-hand housing market delivered a standout performance that sharply contrasts with the ongoing contraction in new home sales. While new property transactions struggled with double-digit percentage declines, the second-hand market posted robust positive growth — a structural shift that is reshaping the geometry of China's residential property sector.
Online Signing Area: +10.2% YoY
Second-hand housing online signing area grew 10.2% year-on-year in H1 2026, accelerating 2.5 percentage points compared to the January–May period. This acceleration is particularly notable given that the comparison base was already rising in 2025.
Key City Performance: Approximate Parity with New Homes
In key monitored cities, second-hand transaction volumes rose approximately 6% year-on-year in deal count terms. More strikingly, second-hand trading area has now reached a scale roughly equivalent to new home sales area — a watershed moment that signals the market is undergoing a structural normalization.
Why Second-Hand Is Outperforming
- Price advantages: Existing homes typically trade at a discount to comparable new builds
- Immediate availability: No waiting period for construction completion
- Location quality: Mature neighbourhoods with established infrastructure
- Policy tailwinds: Reduced transaction taxes and simplified transfer processes
- Developer risk aversion: Buyers increasingly wary of unfinished pre-sold projects
Implications for the Market
The second-hand market's strength reflects a healthier, more balanced market dynamic — one driven by genuine end-user demand rather than speculative investment. This trend, if sustained, could provide price stability in major cities and support the broader economic recovery in household consumption.