Citi has released a research report stating that both primary and second-hand property transactions in mainland China performed strongly during the Golden Week holiday, with policy transmission appearing more broad-based and consistent in the second-hand market.

Across the 26 cities tracked by the bank, second-hand transaction volumes rose 53% year-on-year, with every city recording growth.

In the primary market, new home registrations across 13 tracked cities increased 41% year-on-year, rising from 1,991 units to 2,812 units, primarily driven by Hangzhou, Nanjing, Ningbo, and Beijing, which posted year-on-year gains of 347%, 259%, 244%, and 145% respectively.

Among tier-one cities, Beijing clearly outperformed, while Guangzhou, Shanghai, and Shenzhen declined 2.2%, 7.2%, and 42% year-on-year respectively, partly due to limited supply. Chengdu also fell 40% year-on-year.

The bank believes that the substantial divergence indicates the primary market recovery has not yet spread across the board.

In the second-hand market, transactions across the 26 tracked cities increased from 18,038 units to 27,720 units, with every city recording growth.

Regional hub cities led the gains, including Qingdao, Nanchang, Xuzhou, and Hefei, which rose 111%, 97%, 95%, and 94% year-on-year respectively.

Tier-one cities also improved in tandem: Shanghai rose 75% year-on-year, Beijing gained 51%, Shenzhen climbed 40%, and Guangzhou advanced 35%.

The bank believes that the broad participation across cities at all tiers supports the view that second-hand demand is leading the recovery in property transaction volumes.