A Structural Shift Underway
China's second-hand housing market is quietly outperforming new home sales in 2026, a trend that signals a fundamental restructuring of the world's largest property market. While new home transactions in major cities remain below their 2021 peaks, second-hand housing volumes have recovered to near-2020 levels in cities including Beijing, Shanghai, and Guangzhou, driven by price discounts, lower transaction risks, and shifting buyer preferences.
June 2026: 20 Cities Post Monthly Price Gains
Data from the National Bureau of Statistics for June 2026 showed 20 of 70 monitored cities recording month-on-month home price increases, the highest count in over two years. Notably, the share of second-hand transactions rose to 62% of total housing transactions by volume in tier-1 cities — up from 48% in 2023.
Why Buyers Prefer Existing Homes
- Price advantage: second-hand units are typically priced 10–25% below comparable new builds
- Reduced delivery risk: completed properties eliminate the developer default risk that plagued pre-2025 buyers
- Location and quality visibility: physical inspection possible before purchase
- Policy incentives: lower transaction taxes and reduced down-payment requirements favour completed properties
Market Implications
The shift toward second-hand homes is a double-edged development: it provides genuine demand recovery and price stability, but it depresses developer revenues and delays the inventory clearance that is key to sector deleveraging. Developers with large stocks of completed but unsold units benefit, while those relying on pre-sales face continued margin pressure.