Core Viewpoint - The villa market is experiencing a resurgence, with increasing transaction volumes and prices in cities like Guangzhou and Hangzhou, driven by a shift in buyer preferences towards low-density living and improved lifestyle choices [1][2][3]. Group 1: Market Activity - Guangzhou has seen multiple transactions of second-hand villas, with notable sales such as a 380 square meter villa sold for 18.18 million yuan, translating to approximately 5.23 million yuan per square meter [2]. - In Hangzhou, the villa market is particularly active, with 44 transactions recorded in the first five months of 2025, reaching about 67% of the total transactions for the previous year [3][4]. - The demand for villas is not limited to second-hand properties; new villa projects in cities like Shanghai and Suzhou are also attracting significant buyer interest, with some projects achieving high sales rates upon launch [4][5]. Group 2: Buyer Preferences - There is a noticeable shift in buyer preferences towards villas, driven by factors such as location and scarcity, with buyers increasingly valuing the unique attributes of villa properties [3][7]. - The pandemic has accelerated the desire for homes with outdoor space, leading to a surge in demand for villas as buyers seek a different lifestyle experience [7][8]. Group 3: Supply Dynamics - The supply of low-density land is increasing, with a notable rise in plots with a floor area ratio (FAR) below 1.5, which is conducive to villa development [9][10]. - In 2024, 18% of residential land in 22 key cities had a FAR below 1.5, an increase of 6.3 percentage points from 2023, indicating a trend towards more villa-friendly land policies [10][11]. - Suzhou is particularly notable, with a significant increase in the supply of villa-type products, including a threefold increase in the supply of linked villas in 2024 compared to previous years [11].

Core Insights - The high-net-worth population is increasingly confident in upgrading their housing consumption, particularly in the villa market, which has seen a resurgence in transactions since March 2024 [1][2] - The demand for low-density residential products is rising, with a notable increase in the supply of villa-type properties across major cities [5][7] Market Trends - Guangzhou has experienced a significant increase in second-hand villa transactions, with properties selling for over 20 million yuan, indicating a strong market recovery [2][3] - In Hangzhou, the villa market is thriving, with sales in the first five months of 2024 reaching 67% of the total sales for the previous year, driven by high demand from local entrepreneurs and external wealthy buyers [3][4] - Shanghai's unique villa products are gaining traction, with new launches achieving high sales rates, reflecting strong interest from high-net-worth individuals [5] Supply Dynamics - The supply of low-density land is increasing, with 18% of residential land in 22 key cities having a plot ratio below 1.5 in 2024, up 6.3 percentage points from 2023 [1][8] - The easing of restrictions on villa land supply is expected to stabilize and enhance overall market confidence, catering to the growing demand for low-density residential options [7][9] - Suzhou is particularly notable, with a significant increase in the supply of villa-type properties, including a threefold increase in the supply of linked villas in 2024 [9]