Core Viewpoint - The Nanjing real estate market has been experiencing a downward trend in both new and second-hand housing prices and transaction volumes since the second half of 2025, indicating a deep adjustment phase in the market [1][2][5]. New Housing Market - From January to August 2025, Nanjing's new residential supply totaled 136.82 million square meters, a year-on-year decrease of 22.53%, while total transactions reached 202.40 million square meters, down 14.40% year-on-year [1][2]. - In August 2025, the transaction volume for new residential properties was 17 million square meters, representing a month-on-month decline of 18% and a year-on-year decline of 44% [2]. - The average sales price index for new residential properties in Nanjing fell by 0.6% month-on-month and 1.3% year-on-year in August 2025, with an average cumulative decline of 1.9% from January to August [2]. Second-Hand Housing Market - In the first eight months of 2025, the total transaction volume for second-hand housing in Nanjing was 577 million square meters, a year-on-year decrease of 4% [5]. - In August 2025, the transaction volume for second-hand housing was 58 million square meters, down 12% month-on-month and 23% year-on-year [5]. - The average sales price index for second-hand residential properties fell by 0.7% month-on-month and 6.2% year-on-year in August 2025, with a cumulative average decline of 5.3% from January to August [5]. Price Adjustments - The proportion of second-hand housing communities with price reductions has been increasing, with 68% of high-frequency trading communities experiencing price declines in August 2025, marking a significant increase from the previous month [7]. - In August 2025, 77% of high-frequency trading communities had their listing prices reduced, the highest proportion in nearly a year, with an average decline of 10.3% compared to August 2024 [14]. - The downward price adjustment is particularly pronounced in the first-time buyer and improvement segments, with 71% and 65% of properties in these categories, respectively, experiencing price declines in August [16]. Market Dynamics - The core issue driving the continuous decline in Nanjing's housing prices is the pressure from inventory and high land supply [18]. - The narrow inventory digestion cycle is less than 20 months, but the broad inventory digestion cycle is approaching 10 years, leading to a significant amount of residential land becoming "dead stock" [18]. - To stabilize the market, it is suggested that authorities focus on supporting key trading segments and optimizing supply-side measures, while also linking land supply to broader inventory levels to alleviate long-term inventory pressures [18].

Core Insights - The recent surge in second-hand housing transactions in Nanjing, with a 19.5% week-on-week increase, indicates strong market vitality despite previous fluctuations [1][4]. Group 1: Transaction Data - Nanjing's second-hand housing transactions reached 1,507 units last week, including areas like Gaochun and Lishui [1]. - Properties sized between 60-90 square meters accounted for 38% of transactions, while homes priced between 1 million to 2 million yuan made up 38.4% of total sales [3]. Group 2: Factors Behind the Increase - Recent monetary policies, including interest rate cuts and adjustments to public housing fund rates, have lowered entry barriers and costs for homebuyers, enhancing market activity [4]. - The release of pent-up demand from the "golden three and silver four" months has sustained interest in second-hand homes, particularly among young first-time buyers seeking cost-effective options [4]. - Increased confidence in the market is reflected in the stabilization of new home prices, encouraging homeowners to list their properties and prompting buyers to engage more actively [4]. Group 3: Market Outlook - The Nanjing second-hand housing market is expected to maintain a certain level of activity due to ongoing favorable policies and stable demand, although factors like inventory and land supply may pose challenges [6]. - Buyers are advised to consider location, school districts, and amenities when selecting second-hand homes, while sellers should price their properties reasonably and time their listings effectively [6].