Second-hand home "flash" transaction in 3 days, new project launches announce price increases, Shanghai real estate "mini spring" market trend becomes increasingly clear

Source: Shanghai Securities News Author: Zhang Liang

It’s been nearly a “month” since Shanghai’s new “Seven Policies” for the real estate market were implemented. Recently, Shanghai Securities News reporters found that transaction volumes in the second-hand housing market have surged, with many indicators reaching new highs for the period. The new housing market is also experiencing a mild recovery, with some projects announcing price increases, actively reflecting an optimistic outlook on market trends. All signs indicate that, under the precise support of the “Seven Policies,” Shanghai’s real estate market is showing a trend of “increased volume and stable prices,” making the “small spring” market in March increasingly clear.

Market Activity Significantly Boosted

On March 21, a real estate agent near Yuchao Metro Station in Pudong New Area told reporters that recent market transactions have been very active. In the past week, three units at the Yujie International City community in Yuchao have been sold, and the agent also facilitated a deal, with the client already paying a deposit. He said, “Since the new policies, transactions have indeed become more active. Some properties sell within just three days of listing, and bargaining space for second-hand homes has shrunk. Landlords’ anxiety about selling has eased considerably.”

On the same day, the Pudong New Area Real Estate Transaction Center was bustling. By 11 a.m., the large screen at the transaction hall showed 55 service windows, 671 issued numbers, and 541 cases being processed. Staff told reporters that all windows are fully open on weekends, handling about 1,300 cases per day. Since the new policies, buying and selling outside the outer ring line has almost been unrestricted, leading to a surge in people. Plus, March and April are traditionally peak months for real estate transactions, so high foot traffic is normal.

Since March, the transaction activity in Shanghai’s second-hand housing market has rapidly increased, with many indicators reaching new highs for the period. Data from online real estate platforms show that from March 9 to 15, 2026, Shanghai’s second-hand home transactions totaled 7,233 units, a 26.69% increase from the previous week’s 5,709 units, also setting a weekly high since 2021. Notably, on March 14 (Saturday), 1,472 units were sold, just one unit shy of the 1,473 units sold on March 15, 2025. Including Sunday, March 15, with 1,390 units sold, the weekend total reached 2,862 units, the highest in nearly five years for weekend second-hand home sales in Shanghai.

According to Zhang Bo, Director of 58 Anjuke Research Institute, the surge in second-hand home transactions in Shanghai signals a trend of warming. Data from Anjuke’s online user behavior show that during the week of the new policy implementation, the number of users initiating WeChat chats increased by 144.7% week-over-week, the number of initiating users increased by 133.7%, and the number of users leaving contact information increased by 251.8%. The WeChat contact rate also increased by 50.5%, and this upward trend continued into mid-March.

Recently, reporters visited the Minhang District Real Estate Transaction Center in Shanghai. Staff there told reporters that since the new policies were introduced, the number of citizens consulting and transferring property has increased significantly, sometimes making it hard to find available seats even on weekends.

“Since the implementation of the new policies in March, the volume of second-hand home transactions has increased rapidly, characterized by fast speed, strong momentum, and broad coverage. The market’s heightened activity is the result of multiple favorable factors, including the continued release of policy benefits, confidence gradually restoring as prices adjust, and a reversal in supply and demand patterns,” said Yan Yuejin, Deputy Director of Shanghai E-House Research Institute.

Compared to the “explosive” volume in the second-hand market, the new housing market appears more moderate but also shows positive signs.

Recently, reporters visited sales offices of new projects in Putuo District, Jiading District, and Minhang District. On weekdays, some buyers still came to view properties. A salesperson at the China Overseas Huanyu Jiu Zhang project in Putuo said that on weekends, nearly 150 groups of clients visited in a single day, making it difficult for sales staff to keep up, with even less time for detailed discussions. A salesperson at the Times City project in Jiading said that after the new policies, project transactions doubled compared to the same period in January. A salesperson at the Poly Duhui and Huxu projects in Zhuangqiao, Minhang, revealed that on March 21, the project sold 16 units in a single day, and since the new policies, a total of 85 units have been sold. Starting March 23, the project will initiate a second round of price increases.

According to China Index Academy, from March 9 to 15, 2026, Shanghai’s new commercial residential transactions reached 220,000 square meters, a 62% increase from the previous week, marking the highest weekly volume since 2026.

Lu Wenxi, a market analyst at Centaline Shanghai, believes that the “Seven Policies”—which include reducing housing purchase restrictions, optimizing housing provident fund loans, and improving personal property tax policies—have effectively activated latent demand through targeted measures. The surge in second-hand transactions is not only a release of accumulated demand but also a significant boost to market confidence. The steady recovery in new housing, along with some projects raising prices, further confirms improved market expectations, with buyers more willing to enter the market and developers more confident about future trends.

Dominance of First-Time Buyers

It is noteworthy that the recent market rebound in Shanghai mainly stems from the concentrated release of rigid demand, with second-hand transaction structures showing a clear bias toward lower total prices. During interviews, many real estate agents reported that the market’s increased activity is especially evident in small units around 3 million yuan, which are selling faster. As long as prices are close to the recent transaction prices within the same community, sales tend to be easier.

Recently, a real estate agency in Hong Song Road, Minhang District, told reporters that since the new policies were implemented, they successfully closed a deal. The client had been viewing properties since early February and finally purchased a one-bedroom unit for a total of 1.86 million yuan.

“Small units are the most popular in our area,” said Luo Yangyang, the store manager. “On one hand, small units have lower total prices, fitting the budget of first-time buyers; on the other hand, when small units are sold, the original owners have the funds and motivation to upgrade to larger homes, which promotes the circulation of improved housing.”

According to China Index Academy, from January to February 2026, nearly 17,000 second-hand homes under 3 million yuan were sold in Shanghai, a 25.2% year-over-year increase, accounting for 56.1% of total second-hand transactions during that period—up 6 percentage points from 2025. This structural change reflects that prior price declines have made more homes fall into the low-price range, with the cost-effectiveness of second-hand homes becoming more apparent. As policy benefits are released, the willingness of cautious first-time buyers to enter the market has increased, boosting low-price transaction volumes.

This trend continued into March. Data from Lianjia Shanghai shows that from the Spring Festival to March 19, over 60% of second-hand home transactions under 3 million yuan involved properties in this price range, a 4 percentage point increase from before the festival.

Zhang Bo told reporters that, based on Shanghai’s transaction data, first-time buyers remain the core support, while improved housing demand has a more noticeable impact on prices. In terms of regions, high-end improved housing in core districts like Xuhui, Jing’an, and Changning, over 144 square meters, has attracted more middle- and high-end demand. In suburban areas, such as Baoshan, Songjiang, and Minhang, small units of 90 square meters or less are absorbing a large amount of spillover demand. The policy stimulus outside the outer ring is particularly effective, with market activity increasing by over 17% compared to half a month before the Spring Festival.

“Currently, the main focus of Shanghai’s second-hand market remains on first-time buyer demand outside the ring and in the middle ring, as well as on first-time and improved housing projects,” Yan Yuejin said. “Whether the market can sustain this momentum depends on the transaction situation of properties priced between 5 million and 8 million yuan. According to the operation of the replacement chain, active first-time demand creates the conditions for improved housing ‘selling old and buying new.’ Recently, with more news of slight price increases, the wait-and-see attitude toward replacement demand is diminishing. It is expected that in late March and subsequent months, transactions in the mid-to-high-end improved housing and luxury market will also pick up, expanding and transmitting market enthusiasm.”