China's Home Sales Rise During National Day Holiday

BEIJING (Reuters) – China's home sales increased during the National Day holiday following various property stimulus measures initiated to bolster the struggling real estate market since late September, according to state media reports on Saturday.

Across the world's second-largest economy, several policies, including reductions in down-payment ratios and mortgage rates, were implemented this year to support the property sector, which historically accounted for one-quarter of economic activity.

During the week-long holiday starting on Tuesday, there was a significant rise in the number of house visits, indicating a willingness to purchase homes. Sales of homes in many locations also rose to "varying degrees," as reported by state broadcaster CCTV.

More than 50 cities rolled out measures to invigorate the real estate market, with nearly 2,000 developments from over 1,000 property companies participating in promotional efforts. CCTV cited the Ministry of Housing and Urban-Rural Development, noting that the number of visits to most projects involved in promotions surged by over 50% year-on-year.

In Shenzhen, a southern Chinese city, many real estate sales offices operated through the night to attract potential buyers, with reports indicating significant increases in both transaction volumes and the number of viewers of properties, according to the 21st Century Business Herald, which did not provide detailed figures.

Some prospective buyers traveled long distances to view homes, the report stated.

Last month, Guangzhou in southern Guangdong province lifted all restrictions on home purchases, while both Shanghai and Shenzhen announced plans to ease restrictions on housing purchases by non-local buyers and to reduce the minimum down-payment ratio for first-time homebuyers to no less than 15%.

These measures were introduced shortly after China launched its most substantial economic stimulus since the COVID-19 pandemic to combat economic deflation.