Core Viewpoint - The second-hand housing market in major cities, particularly Shanghai and Beijing, is experiencing a significant decline in listing volumes, indicating a shift in market dynamics and potential stabilization in prices [4][5][6]. Group 1: Market Trends - Shanghai's second-hand housing listings have decreased to approximately 336,800 units as of January 27, 2026, marking a continuous decline over four months and returning to levels seen in February 2025 [4]. - The Shanghai Lianjia platform reports a 20% reduction in second-hand housing inventory compared to January 2025, with transaction volumes increasing by 15% month-on-month as of January 20, 2026 [5]. - In Beijing, the second-hand housing listings have dropped from 143,200 units in September 2025 to 125,300 units, reflecting a broader trend of declining new listings across major cities [6]. Group 2: Seller Behavior Changes - Many homeowners are opting to withdraw their listings or convert sales to rentals due to persistent price pressures and market uncertainty, with some reporting that rental yields can reach 3.3% to 3.5% [8][11]. - A notable case involves a homeowner who, after multiple price reductions, chose to withdraw her property from the market, indicating a shift in mindset among sellers who are now more reluctant to sell at lower prices [8][11]. Group 3: Factors Influencing Listing Decline - Analysts attribute the decline in listings to a combination of factors, including a slowdown in new listings and an acceleration in transaction speeds, leading to a gradual consumption of existing inventory [11]. - The market is witnessing a transition where sellers are less willing to accept significant price cuts, suggesting a potential stabilization in housing prices as the downward pressure eases [11][12]. - The overall transaction volume in Shanghai reached a four-year high of 254,000 units in 2025, with expectations for continued strong performance in early 2026, driven by high-value properties entering the market [12].

Core Insights - The second-hand housing market in major cities like Beijing and Shanghai is experiencing a notable decline in listing volumes, indicating a shift in market dynamics and potential price stabilization [1][2][3] Group 1: Market Trends - Shanghai's second-hand housing listings have decreased for four consecutive months, returning to levels seen in February of the previous year, with a current inventory drop of approximately 20% compared to January 2025 [2][3] - The overall transaction volume in Shanghai has shown a significant increase, with a 15% month-on-month rise in January 2026, suggesting a recovery in market confidence [2][7] - In Beijing, the second-hand housing listings have decreased from 143,200 units in September 2025 to 125,300 units by January 2026, reflecting a broader trend across major cities [3] Group 2: Seller Behavior - Many homeowners are opting to withdraw their listings or convert sales to rentals due to persistent price pressures and market uncertainty, with some choosing to renovate properties instead [4][5][6] - The rental yield for older properties has become attractive, with annual returns estimated between 3.3% and 3.5%, prompting some owners to shift their strategy from selling to renting [6] Group 3: Price Dynamics - Analysts suggest that the current decline in listing volumes is a result of multiple factors, including a slowdown in new listings and an acceleration in sales, leading to a more balanced supply-demand relationship [6] - The price correction in the second-hand housing market has been significant, with expectations that prices will not see further drastic declines, as the adjustment has already exceeded international averages [3][6] Group 4: Transaction Data - The total transaction volume for second-hand homes in Shanghai reached 254,000 units in 2025, marking a four-year high, with projections indicating continued strong performance into 2026 [7] - The market's activity is bolstered by a concentration of high-value properties entering the market, attracting both cautious buyers and those looking to capitalize on lower prices [7]