New Home Transactions Rebound
China's 30 major cities recorded new home sales of 1.76 million square metres in the week of August 16–22, 2026 (Week 34), a week-on-week jump of 28.8%, according to data from the China Index Academy (中指研究院). Year-on-year, however, the reading was still down 9.7%, showing that the recovery is real but not yet broad-based.
Secondary Market Holds Steady
The 20-city secondary market moved 27,656 units in the same week, up 4.9% WoW and 7.2% YoY. For context, August 1–22 cumulative new home sales across 30 cities fell 9.3% YoY, while secondary transactions rose 6.1% YoY — a divergence that reflects structural buyer preference for completed properties over developer-financed new units.
First-Tier Cities Lead the Charge
| City Tier | WoW Change | YoY Change |
|---|---|---|
| First-tier (overall) | +15.2% | +16.9% |
| — Guangzhou | +32.5% | +37.8% |
| Second-tier (overall) | +36.1% | -19.3% |
| — Wenzhou / Jinan / Hangzhou | >+110% | — |
| Third- and fourth-tier | +30.4% | -6.8% |
Guangzhou stood out among first-tier cities, with new home transactions up 32.5% WoW and 37.8% YoY — the steepest weekly gain across all monitored cities. In the second tier, Wenzhou, Jinan and Hangzhou each recorded more than 110% WoW growth, pointing to policy-triggered pent-up demand in cities that had been under tighter restrictions.
Policy Catalyst: Beijing and Shanghai Unveil Easing
The surge coincides with two landmark policy moves. Beijing cut social insurance requirements for non-local buyers to one year from two, removed purchase caps outside the Fifth Ring Road, and granted extra purchase quotas for multi-child families. Shanghai launched a simultaneous eight-measure package on August 20, lowering outer-ring second-home down payments to 15% and offering purchase subsidies of up to 80,000 yuan. Both are designed to catalyse activity ahead of the traditional September–October peak season.
Land Market: Selective Recovery
During Week 34, 300 Chinese cities recorded residential land transactions totalling 3.11 million square metres with land transfer fees of 115 billion yuan. Tier-1 city land auctions were notably active: a Beijing Haidian plot sold to China Jinmao for 97.61 billion yuan (14.1% premium), while Pudong Tangtown parcels in Shanghai sold at premiums above 26%. The pattern of "spot-level heat amid broad softness" — as analysts describe it — looks set to persist.
Outlook
With the PBOC holding the 5-year LPR at 3.5% (its 15th consecutive month unchanged), mortgage financing remains historically cheap. Analysts at China Index Academy expect the policy cocktail — central bank liquidity, eased purchase restrictions, and targeted local subsidies — to produce a transaction surge in September–October, though downside risks from economic headwinds and lingering demand weakness warrant close monitoring.