Core Insights - The Suzhou second-hand housing market is showing signs of recovery, with a significant increase in transaction volume and prices due to effective market stabilization policies [1][2][6] - In January, the transaction volume of second-hand homes in Suzhou doubled year-on-year, with a month-on-month increase of 11.2%, indicating a positive market trend [2][3] - The market is experiencing a clear regional differentiation, with core areas seeing higher demand for new and improved housing, while non-core areas remain stable [1][3][4] Market Performance - In January, Suzhou recorded 4,391 second-hand home transactions at an average price of 14,900 yuan per square meter, reflecting a growing market enthusiasm [3] - The transaction volume from January 12 to 18 reached 1,083 units, a 16.3% increase from the previous week, with a notable daily spike on January 17 [3][4] - Core areas like the Industrial Park and Lion Mountain are experiencing a surge in activity, with agents reporting a significant increase in property viewings [3][5] Price Trends - The average price of second-hand homes has been rising for four consecutive months since October 2025, with a month-on-month increase of 1.3% [2][6] - Prices in the market have generally decreased by about 15%, leading to a more rational pricing strategy among sellers [5][10] - The reduction in transaction costs due to tax policy changes is expected to further stimulate demand and support price stability [9][10] Policy Impact - Recent government policies, including a reduction in the value-added tax for properties sold within two years, have lowered purchasing costs and stimulated market activity [9][10] - The easing of credit conditions, with first-time home loan rates dropping into the "2" range, has made home buying more accessible [9] - Upcoming initiatives, such as the youth talent loan subsidy program, aim to alleviate financial pressure on young buyers, further enhancing market dynamics [9] Market Outlook - The market is transitioning from a phase of increased volume to one of price stabilization, with a cautious optimism prevailing among industry insiders [10] - The sustainability of the current market heat is contingent on ongoing policy support and the reinforcement of market confidence [10] - Overall, the Suzhou second-hand housing market has emerged from its bottoming phase, but complete recovery will require continued policy efforts and strengthened buyer sentiment [10]

Group 1 - In 2025, multiple cities in the province introduced new real estate policies, stimulating both new and second-hand housing markets, with new housing transactions remaining lower than second-hand due to a focus on inventory reduction [1] - The total number of second-hand homes sold in Suzhou reached 57,650 units in 2025, with peak transactions occurring in March, and the Kunshan area accounting for the highest share at 28% [1] - The most popular second-hand housing size was between 90-120 square meters, making up over 32% of transactions, while the average transaction price began to gradually rise over three months starting from the fourth quarter of 2025 [1] Group 2 - In 2025, new housing transactions in Suzhou totaled 21,443 units, also peaking in March, with the Xiangcheng district leading in sales at over 23% [1] - Similar to second-hand homes, the 90-120 square meter range was the main contributor to new housing sales, accounting for over 34% of the total [1] - The price range of 2-3 million yuan saw the highest proportion of new housing transactions, reaching nearly 30% [1] Group 3 - As of December 2025, the Ministry of Finance and the State Taxation Administration announced a reduction in the value-added tax rate for residential properties sold within two years, which is expected to activate demand for improved housing and promote the circulation of second-hand homes [2] - The analysis from the Shell Research Institute indicates that the new policy will support market stabilization and recovery in 2026, which is deemed a critical year for real estate [2] - It is anticipated that in 2026, various policy tools will be employed to stabilize the real estate market, contributing to qualitative and quantitative economic growth [2]