China Homebuyers Flock to Resales as Existing Homes Undercut New Units by 10% to 30%+
Updated
Updated · Housing Notes · May 16
China Homebuyers Flock to Resales as Existing Homes Undercut New Units by 10% to 30%+
2 articles · Updated · Housing Notes · May 16
China’s housing market is tilting toward existing homes, with resale transactions near pre-pandemic levels and often surpassing new-home sales in major cities such as Shanghai.
Buyer confidence in new projects collapsed after developer distress and unfinished presale homes pushed households to favor move-in certainty over off-plan purchases.
Prices are reinforcing that shift: secondary homes clear faster at discounts often exceeding 10% to 30%, while developers keep new-home prices relatively sticky.
That pricing rigidity reflects financing constraints, with developers leaning on incentives instead of outright cuts even as demand migrates away from the primary market.
The change marks a broader reset in China’s housing model, weakening the dominance of presales and new development as trust becomes a central driver of demand.
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