Home Sales Rise During National Day Holiday in China

BEIJING (Reuters) – China’s home sales increased during the National Day holiday following various property stimulus measures aimed at revitalizing the struggling real estate market since late September, according to state media.

Throughout the country’s economy, policies have been enacted this year, such as reductions in down-payment ratios and mortgage rates, to support the property sector, which previously accounted for one-quarter of economic activity.

During the one-week holiday that started on Tuesday, the number of home visits, indicating buyer interest, significantly increased, with many regions reporting varying degrees of sales growth, as reported by state broadcaster CCTV.

More than 50 cities introduced initiatives to bolster the real estate market, with nearly 2,000 projects from over 1,000 real estate companies running promotional events, according to CCTV, citing the Ministry of Housing and Urban-Rural Development.

Visits to most projects involved in these promotions saw an increase of over 50% year-on-year.

In Shenzhen, southern China, many real estate sales offices operated overnight to attract home-buyers, leading to a notable rise in transaction volumes and property viewings, as reported by the 21st Century Business Herald, though no specific details were given.

Buyers even traveled long distances to view homes.

Last month, Guangzhou in Guangdong province lifted all home purchase restrictions, while both Shanghai and Shenzhen announced eased restrictions for non-local buyers and reduced the minimum down-payment ratio for first-time buyers to no less than 15%.

These measures follow China’s largest stimulus package since the COVID-19 pandemic, aimed at revitalizing the economy from a deflationary slump.