China's Property Market Shifts as Resale Transactions Overtake New Home Sales in Volume
According to the South China Morning Post, official data from the National Bureau of Statistics indicates that secondary market home transactions have surpassed new residential construction in volume for the first time, suggesting a structural migration in housing demand.
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The South China Morning Post reports that secondary market home transactions have surpassed new residential builds in volume, according to official figures released by the National Bureau of Statistics in September. Nationwide registered resales amounted to 549 million square metres, which the report suggests indicates that housing demand in China has not disappeared, but has instead undergone a structural migration.
This development signifies a shift away from the prior growth model. For approximately twenty-five years after the conclusion of the old welfare housing system in 1998, China's property market functioned through a high-velocity loop. Under this system, developers would secure municipal land, pre-sell incomplete apartments, collect buyer funds, and then channel those advances into subsequent projects, making residential construction the main economic driver of the nation.
This previous engine is reportedly losing its momentum. What is emerging is described not as a diminished version of the former market, but as an entirely different market. The report suggests that the focus is shifting from developers marketing a future promise to households exchanging their current homes.
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