“Policy relaxations are starting to take effect, with both first- and second-hand markets seeing increased demand. However, shortterm market activity remains focused on core areas and the high-end market.”

JAMES MACDONALD, SAVILLS RESEARCH



First-hand demand and supply recover, allowing for potential price increases.

• First-hand commodity residential supply increased 28.3% in Q2/2024 to 2.18 million sqm, down 21.4% YoY.

• First-hand commodity residential transaction volumes increased 34.0% QoQ to 1.84 million sqm, down 31.0% YoY. • Average transaction prices edged down 0.5% QoQ to RMB79,408 per sqm, up 24.7% YoY.

• Ten projects including Opus One, Oceanwide International, Shanghai Arch and DOMUS added 2,329 apartments to the market in Q2/2024.

• First-hand high-end apartment transaction volumes surged more than fourfold compared to a year earlier to 383,129 sqm in Q2/2024, up 81.7% QoQ.

• First-hand high-end apartment transaction prices increased 2.7% in Q2/2024 to an average of RMB142,439 per sqm, up 7.3% YoY.

• Second-hand residential sales volumes grew 45.2% QoQ to 4.6 million sqm, up 28.4% YoY; while average transaction prices edged up 0.33% QoQ to RMB41,197 psm, up 0.34% YoY.

• A total of four residential plots were auctioned in May, with a buildable area of 242,716 sqm selling for RMB9.98 billion at an average accommodation value (AV) of RMB41,135 psm.