Sales spike for China’s pre-owned homes in early 2024 points to property-market recovery later this year, analysts say

China’s pre-owned homes market is showing signs of recovery, based on data for the first two months of 2024, amid continued efforts by authorities to ease purchase restrictions to arrest a prolonged nationwide property slump.

Sales of second-hand homes in 25 major cities across the country jumped by nearly 25 per cent in January and February compared with the same period in 2022, according to data published in March by the China Index Academy, a real estate research firm.

While sales declined 13.1 per cent compared to 2023 – partly due to a high base because pent-up demand caused sales to spike after China scrapped its Covid lockdown rules in late 2022 – they nonetheless could herald a more significant recovery later this year, according to analysts.

“Sales went down, but there is still a good amount of activity in the pre-owned homes market, as is reflected in the increased number of listings,” said Yan Yuejin, director of the Shanghai-based E-house China Research and Development Institute.

“This gives buyers more options. An increase in supply also drives down prices, and as sellers begin to take bigger cuts on prices, the value for money of pre-owned homes will become more obvious.”