Market Overview - The overlap rate between new and second-hand housing markets in February 2026 slightly decreased by 0.1 percentage points, maintaining around 12%[2] - The overlap rate in first-tier cities is the lowest at 8.3%, down 0.2 percentage points month-on-month and 1.6 percentage points year-on-year[2] - Second-hand housing search proportion ended a seven-month upward trend, decreasing by 0.3 percentage points to 74.7%, but still up 3.6 percentage points year-on-year[6] Market Dynamics - The second-hand housing market's diversion pressure towards new housing has weakened, with a diversion pressure of 32.3%, down 0.5 percentage points month-on-month and 1.6 percentage points year-on-year[8] - In February 2026, the diversion pressure in first-tier cities is the lowest at 23.9%, while third and fourth-tier cities have the highest at 38.4%[8] - The transaction volume for both new and second-hand homes in 46 cities dropped significantly by 41% and 44% respectively month-on-month, consistent with seasonal trends[15] Future Outlook - The market is expected to recover post-holiday, with pent-up demand likely to be released, leading to improved transaction volumes in March[23] - The differentiation between new and second-hand housing markets is anticipated to continue, with a marginal improvement in the new housing market environment expected in March[23]