The policy benefits of Shanghai's new seven-point property measures are being fully realized, with the city's secondary housing market transaction volume rising after a post-holiday adjustment period. According to online real estate data, on March 7 (Saturday), Shanghai recorded 1,324 net signings for pre-owned homes in a single day, marking the highest daily figure in 315 days. The last time Shanghai’s resale home transactions reached a similar level was on April 26, 2025, when 1,419 deals were signed.
Market activity remained strong on March 8, with 1,179 transactions completed, keeping the weekend total above the 1,000-unit mark for two consecutive days. Even as the workweek began on March 9, sales remained elevated at 870 units. Data shows that from March 1 to March 10, total secondary home transactions in Shanghai reached 8,467 units. Industry experts predict that if this pace continues, monthly sales could reach 25,000 units, indicating that the market may be stabilizing and bottoming out.
Yan Yuejin, Vice President of the Shanghai E-House Real Estate Research Institute, noted that Shanghai's secondary housing market has maintained strong momentum after the Spring Festival, with particularly robust weekend performance. Other key cities have also seen positive trends in resale home transactions. A major factor is that housing costs are currently relatively low, supported by ongoing favorable policies and growing expectations that prices will stabilize. These factors are collectively driving increased market activity.
He added that the withdrawal of some property listings has eased supply-demand imbalances in Shanghai, reinforcing positive market sentiment and supporting transaction volume. Optimism around urban village redevelopment policies has also contributed to a "spring warming" effect in the market.
Some sellers have even raised asking prices shortly after listing. On February 25, Shanghai introduced the "Notice on Further Optimizing and Adjusting Local Real Estate Policies," which included seven measures to stabilize the property market, such as shortening social insurance requirements for non-local buyers, relaxing purchase restrictions for residents with permits, and raising the cap on public housing fund loans. These are collectively referred to as the "Shanghai Seven."
These measures are seen as a catalyst for the current uptick. Unlike the slow recovery seen in previous years after the holiday, this year’s policy rollout prompted an immediate market response, with the secondary home sector being the most directly impacted. In late February, daily transaction volumes quickly rose from over 500 units before the policy announcement to over 800. The upward trend continued into March.
Even before the new rules, Shanghai's resale market had shown several positive signals. According to Lianjia data, as of February, the number of home listings in Shanghai had declined for nine consecutive months. Compared with January 2025, inventory has fallen by about 20%, indicating a more balanced supply-demand relationship. On the sales side, the transaction cycle for pre-owned homes has also shortened recently.
After the policy took effect, market activity became more pronounced. A Lianjia agent reported that in some mid-ring areas, smaller units were being sold on the same day they were viewed. Multiple agents indicated that the current surge is primarily driven by rigid demand. Transaction data from February shows that lower-priced homes dominated the market, with properties under 3 million yuan accounting for 68.88% of sales, the same as in January, making them the main driver of the recovery.
Activity has been uneven across submarkets. Core urban districts such as Huangpu, Pudong, Changning, and Xuhui—known for their mature amenities and quality schools—are preferred by first-time buyers. In suburban areas, zones like Zhuqiao, Wanxiang, and Xinchang near Lingang New City have also seen increased activity. In some inner-ring neighborhoods, sellers of older, smaller homes have raised prices on short notice.
Feedback from agency branches suggests that the policy’s initial impact has been most evident in the secondary market for several reasons. First, after market adjustments, prices have fallen within a range that many buyers find acceptable. Second, the policies are well-targeted; the maximum family housing loan amount from public funds has been raised to 3.24 million yuan, covering the entry threshold for most first-time buyers. Third, some owner-occupiers believe the rent-to-price ratio has reached a reasonable level, increasing confidence in property value.
Additionally, a policy launched before the Spring Festival, in which Shanghai’s Pudong, Jing'an, and Xuhui districts began purchasing pre-owned homes for use as public rental housing, has provided a stable exit channel for sellers, further stimulating transaction activity.
Lu Wenxi, a market analyst at Centaline Property in Shanghai, pointed out that continued policy support has created a favorable window for both first-time buyers and those looking to upgrade. The Shanghai property market is still in a recovery phase, and March resale transactions may challenge the high levels seen a year ago.
The recovery chain is also extending to new homes. Online real estate data shows that on March 11, Shanghai recorded 733 new home signings in a single day, a significant increase from the average of just over 300 units per day earlier in the month. Recent visits to several mid- to high-end new development sites revealed strong sales activity for homes priced between 20 million and 50 million yuan. High-end projects such as Anlan Shanghai, China Resources Bund Ruifu, Jinmao Puyuan, and Poly Shibo Tianyue have all seen post-holiday transactions. Sales staff at multiple sites reported an increase in visitor numbers following the new policies.
Tospur Research Institute noted that some customers visited sales offices as a direct result of the policy changes, with about one-third of them making purchases. However, the overall increase in foot traffic has been modest, suggesting that the full effect of the policies will take time to materialize.
Speaking at a recent industry forum, Ding Zuyu, Dean of the Shanghai E-House Real Estate Research Institute, emphasized that the new measures are not short-term stimuli but are precisely targeted at the mid-to-low end of the market. The recovery logic—where secondary market activity drives new home sales—is expected to continue stimulating the market through the end of the year.
Some industry insiders noted that it typically takes three to six months for a recovery in the secondary market to translate into new home sales. With the "sell-old-buy-new" chain now active in Shanghai, the current surge in resale transactions is expected to generate additional demand for new homes. As supply conditions normalize and policy effects continue to unfold, the new home market is likely to gradually recover in the second quarter.
Lu Wenxi further analyzed that as policy benefits continue to take effect and supply-demand dynamics improve, the bottoming process in Shanghai’s secondary housing market will become more stable. The new home market is expected to follow suit, leading to a pattern of "steady growth in resale homes and a structural recovery in new homes" for Shanghai’s property market in 2026.