On June 4th, China Finance News reported that after Shanghai relaxed the regulation of the real estate market in all aspects on May 27th, the Shanghai real estate market has clearly heated up.

According to Zhongyuan Real Estate's data released today, the transaction volume of Shanghai's real estate market rebounded significantly last week (May 27-June 2), with a turnover area of 155,000 square meters for new commodity residences, up 34.83% month-on-month.

Analysts told reporters that the change in the week-on-week transaction data of the real estate market after the new policy was introduced can better reflect the policy effect.

"Last week's new house transaction volume increased significantly because of the end-of-month effect, but more importantly, on the evening of last Monday, Shanghai introduced a strong bullish real estate policy. Looking at the market situation one week after the new policy was implemented, the policy effect is quite obvious and the pent-up market sentiment has been able to explode," said Lu Wenxi, senior research manager at Zhongyuan Real Estate.

In terms of supply, there was a large amount of new supply with an increase of 44.83% on a month-on-month basis, which laid a solid foundation for continued upward transaction volume. It is reported that among the eight projects that entered the market, half were priced between 40,000 and 50,000 yuan per square meter, providing an important foundation for the increase in transactions.

According to Zhongyuan Real Estate's data, in terms of regional transaction volume ranking, the new home transaction volume in Jiading District last week surpassed Pudong. The former ranked first with a turnover area of 25,600 square meters among all districts.

Lu Wenxi pointed out that the amplification of Jiading's transaction volume is also influenced by the bullish impact of the "Nine-Straits" policy. The policy plays a further role in promoting transactions and enables transactions to be quickly released.

It is worth mentioning that from the transaction pattern, there is still differentiation between the central urban area and the suburban market, but the signs of accelerated market entry for rigid demand and first-time improvement needs have already emerged.

"From the top ten transaction volume list of projects, products with a unit price of over 100,000 yuan continued to maintain a certain vitality, but different from the fact that high-priced houses had previously dominated the transaction volume, there is only one luxury residential product left in the current list. However, affordable products with a unit price of 40,000 to 50,000 yuan, which are first-time improvement products, have high transaction rankings, and four projects in the current list have sold over 100 units. This indicates that under the promotion of the real estate policy, the market popularity of such products has begun to return, and the activity has significantly improved," Lu Wenxi added.

Not only the new home market, but also the resurgence of the secondary home market in Shanghai is quite obvious.

According to data provided by Lianjia to reporters, after the "Nine-Straits" new real estate policy in Shanghai, the daily average number of buyer consultations increased significantly by 70% compared to the previous two months, the number of visits increased by about 30%, and the number of new house sources increased by 40% compared to the previous daily average over the past two months.

"The new real estate policy in Shanghai has effectively activated the demand of the real estate market, and the entry of buyers is positive. Especially for rigid demand customers, under the positive impact of the bullish policy, the willingness to buy houses has significantly increased, and the speed of house source turnover has significantly accelerated," said an insider from Lianjia Shanghai to reporters.

Some of these increased consultations and visits have already been translated into actual transactions.

According to data from Zhuge House Hunting, from May 27th to June 2nd, 2024, 5,909 second-hand residential units were sold in Shanghai, a significant increase of 31.75% from the previous week, leading the 15 cities on a month-on-month basis.

"After the policies were introduced by Shanghai, Shenzhen and Guangzhou, the market sentiment quickly rebounded. From the data we have monitored, the heat increased significantly in the last week of May compared to the daily average heat in the first three weeks of May, and the increase in the Shanghai market was even higher," said Zhang Bo, chief researcher of 58 Anjuke Research Institute.

It further stated that in the new home market, the search heat increased by 38.6% in Shanghai last week, 11.8% in Guangzhou, and 7.5% in Shenzhen; in the secondary home market, the search heat increased by 44.8% and 12% in Shanghai and Guangzhou respectively.

"The 'Nine-Straits' policy introduced by Shanghai has the characteristics of a large relaxation degree and a wide range of involvement, including measures such as a significant reduction in the threshold for non-Shanghai residents to purchase houses and a minimum down payment ratio lowered to 20%, which sends strong bullish signals to homebuyers. It is expected that these effects will gradually appear in the deal," said Wang Xiaoran, chief analyst of Zhuge Data Research Center.

On May 27th, Shanghai released a strong bullish real estate policy, with nine policy measures including adjusting and optimizing the housing purchase restriction policy, supporting reasonable housing demands of families with multiple children, optimizing housing credit policy, supporting the "replacement of the old with the new" policy, and optimizing land and housing supply.

Shanghai's adjustment and optimization of housing purchase restrictions policy involves rich content, covering the reduction of the social security threshold for non-local residents, the service of talent settlement, optimizing the qualifications for purchasing houses for single, divorced, corporate, and multi-child families, as well as adjusting the gift tax calculation of real estate, and better implementing the service-oriented approach to settlement.

Chen Julan, senior analyst at CICC Shanghai, pointed out that unlike the previous "progressive" relaxation policies, the policy adjustments issued by Shanghai this time are more targeted, with greater strength and wider coverage. By reducing costs, reducing thresholds, adjusting supply, and stimulating demand, the policy makes various adjustments to credit, purchase restrictions, and land supply, and the degree of intensity can be said to be quite high.

In Zhang Bo's opinion, it can be seen from the increase in online user inquiries and the increase in on-site visits to first-hand and second-hand housing that the market's expectations have changed significantly.

"The transaction volume in June is expected to be higher than that in May, but the short-term price expectations are not expected to change much. The bargaining space for second-hand houses in many areas is expected to continue to narrow," said Zhang Bo.

"As core first-tier cities gradually implement various measures, the market is expected to enter a period of policy effect realization. At the same time, in June, real estate companies will enter the sprint stage of the first half of the year, and market activity is expected to further recover," said Meng XinZeng, an analyst at CICC research institute.