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Ministry: China Secondary Home Sales Hit 52% in First Eight Months of 2026
China’s secondary housing market has grown to surpass new construction, capturing 52% of all transactions in the first eight months, according to data presented by the Ministry of Housing and Urban-Rural Development at a State Council Information Office press conference reported by news.pku.edu.cn.
From New Construction to Existing Housing Inventory
The structural shift in the real estate market marks a definitive transition from an era of rapid expansion to a mature, inventory-driven phase. Ministry officials detailed that the market share of secondary home transactions climbed from 27% in 2020 to 46% by 2025, before accelerating past the halfway mark in the opening months of 2026.
This market evolution reflects fundamental changes in supply and demand. Urban per capita housing construction area has surpassed 40 square meters, with average household ownership exceeding 1.1 units. With the basic need for shelter largely addressed and the national resident urbanization rate reaching 67%, urban development has shifted toward quality improvement and efficiency.
Trading Up Replaces Speculation
Transaction patterns show that homeowner置换 (replacement and upgrading) demand—such as selling older properties to buy newer or larger ones—has become the primary driver of market activity. New commodity housing sales floor area fell 12.1% year-on-year during the first eight months of 2026, while existing-home network-signed transaction area grew 10.6% over the same period.
This divergence points to changing consumer priorities rather than shrinking overall demand. Instead, they are pursuing rational trades that prioritize practical living spaces, structural quality, and daily comfort.
Housing Shifts Toward Qualitative Enhancement and Urban Renewal
Addressing the structural shift requires moving away from pure quantitative expansion toward qualitative enhancement. The Ministry of Housing and Urban-Rural Development has advanced the construction of “good houses,” supported by updated residential project standards that guide both new developments and the renovation of older housing stock.
For the broader economy, the real estate sector’s contribution is transitioning from volume-based growth to inventory enhancement. Urban renewal initiatives—including the transformation of urban villages, dilapidated buildings, and aging residential compounds—are stepping up as key drivers for stabilizing investment and upgrading living environments for urban residents.