China’s ‘Golden Week’ Boosts Home Sales: A Glimmer of Hope for the Stagnating Property Market?

Sales of homes in China experienced a boost during 'golden week'. But is it enough to rescue the real estate market?

The sales of newly built houses rose by 27% compared to the previous year as per an index monitoring transactions in 25 major cities on the mainland.

Sales of new homes surged by 27% compared to the previous year in 25 Chinese cities monitored by the China Index Academy. There was a minimum increase of 50% in showroom visits compared to 2023, with 130 cities in 20 provinces running sales promotions during the so-called Golden Week, according to information from the Ministry of Housing and Urban-Rural Development, as reported by the state broadcaster CGTN.

The most noticeable positivity was seen in the major urban areas, often viewed as the industry's benchmark. Shenzhen, often referred to as "China's Silicon Valley" due to the concentration of tech firms such as BYD, DJI, and Huawei Technologies, recorded a ten-times increase in new home sales in the week concluding on September 30th, based on data from Centaline Property Agency, one of Hong Kong's leading agencies.

Showrooms in Beijing and Shanghai were crowded, leading some property developers to prolong their operational hours in order to accommodate the growing influx of visitors, as per local news sources.

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A few days ago, the Chinese government introduced a series of initiatives aimed at boosting spending, investing, and real estate transactions. The People's Bank of China directed lending institutions to lower mortgage rates by half a percent and to decrease the initial payment for second homes from 25 percent to 15 percent. In an effort to stimulate sales, the top four cities in China – Beijing, Shanghai, Guangzhou, and Shenzhen – eased restrictions on home buying.