More homeowners have put their Shanghai properties on sale throughout October over the fear of a continuous downturn in the city’s real estate market.

According to the South China Morning Post, roughly 135,400 pre-owned apartments in China’s most prosperous city were listed for sale at the end of October. It is a 7.8% rise from September and a 30% increase from the end of 2021. The data was retrieved from Fangdi.com.cn, an official website of the local housing administration bureau.

Shanghai property prices have also slumped. As the Post cited from China’s National Bureau of Statistics, costs for second-hand houses in Shanghai dropped 0.4% in October from the month before. It marks the first monthly price fall since November 2021.

Local brokers disclose that homeowners are slashing their asking price by 10% to expedite the process. Shanghai resident Eddy Zhou told the Post he is willing to sell his home at a lower price so long as a deal is struck soon, which means he could evade a further market downturn. 

Song Yulin, a senior manager with Shanghai-based real estate agency 5I5J, said the same concerns had spurred more wealthy people in China to either flee or relocate their assets abroad. Eddy Zhou is also seeking new citizenship in Portugal.

The wealthy people in China are also eying the Chinese Communist Party’s impending policies. Beijing has pledged to regulate wealth, which many suspected were hints of more property and inheritance taxes.

One anonymous homeowner expects his family to lose thousands of yuan yearly because of the property tax. The person believes the levy will come out soon. He expects owners of multiple flats will attempt to sell at least one to evade the measure.

Reuters has previously reported that China’s new home prices in October plummeted to a record low in seven years, down 1.6% year-on-year following a 1.5% decrease in September.

Despite a rescue package announced on November 12, experts were pessimistic about its effectiveness.

Zhang Dawei, the chief analyst at property agency Centaline, stated, “It should be noted that the current problem facing the real estate industry is no longer just for property, but more of economic income expectations.”

Zhang believes the country’s real estate market will continue to struggle in the fourth quarter.

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