The government leads the way in "raising prices to buy old houses," with second-hand home transactions in Ningbo soaring by 132%

As first-tier cities’ real estate markets begin to recover, market sentiment is gradually spreading to second-tier cities. Recently, many cities have shown signs of “stabilization after decline” in their real estate markets, with Ningbo standing out among second-tier cities. Since March, both new and second-hand housing transaction volumes in Ningbo have seen significant increases.

According to publicly available data from the Ningbo Municipal Housing and Urban-Rural Development Bureau, as of March 23, the online signing volume of newly built commercial housing and second-hand houses in Ningbo has increased by 88% and 132% month-on-month, respectively, indicating a significant improvement in transaction activity.

Among these, the second-hand housing market has performed particularly well. According to the daily published transaction data of existing homes on the local housing authority’s website, by March 26, the number of second-hand housing transactions in Ningbo for this month had already exceeded 5,400 units. Since mid-March, the daily online signing volume for second-hand homes in Ningbo has noticeably risen, averaging over 300 units on weekdays.

A local second-hand housing agent stated to reporters that, generally speaking, a monthly transaction volume of 5,000 units is considered the threshold for the Ningbo market, while this month, there is a high probability that the transaction volume will exceed 6,000 units, indicating a clear warming of the market.

In fact, the recovery of the Ningbo real estate market is not a coincidence. After experiencing a deep adjustment lasting five years, signs of recovery began to appear in the market at the beginning of this year. In January, the online signing of second-hand residential properties in Ningbo reached 5,205 units, a year-on-year increase of 36.3%, reaching the second-highest level in nearly six months. Although transactions temporarily receded in February due to the impact of the Spring Festival, a “minor spring” market quickly emerged in March.

Behind the market recovery, the role of local relevant real estate policies is evident.

On February 28, shortly after the Spring Festival holiday ended, Ningbo launched the third phase of the “old-for-new” housing program for all regions. This policy, involving several local state-owned enterprises, is promoted across 11 districts and 57 streets (towns) in the city, covering more than 1,800 communities, focusing on acquiring old houses built before 2010.

The highlight of Ningbo’s “old-for-new” housing program is the “price-increase acquisition.” The price of old houses is determined by the average value assessed by three independent third-party organizations, and residents participating in the exchange can receive an additional “purchase voucher” subsidy of 5% of the appraised value. This means that homeowners can not only sell their old houses at market prices but also gain additional income, significantly reducing the financial pressure of purchasing new homes.

In practice, many residents who participated in the first two phases of the program successfully upgraded from old housing to new homes with only a small amount of additional funds or loans needed by using a combination of “price vouchers + purchase vouchers.” This “low-threshold home exchange” model has greatly stimulated demand for improvements.

After the launch of the third phase policy, market enthusiasm further surged. Official data shows that as of March 23, the special webpage for the “old-for-new” program has received over 170,000 visits, with nearly 20,000 logins and a total of 7,801 applications for old house exchanges submitted, simultaneously driving 1,687 new home subscriptions.

While the transaction volume of second-hand homes has climbed, the listing volume of second-hand homes in Ningbo has seen a certain degree of decline, with the number of second-hand homes available for sale through real estate agencies in Ningbo dropping from over 116,000 units at the end of 2023 to currently less than 87,000 units. Industry insiders indicate that the rapid recovery of the Ningbo real estate market is not only a result of precise policy efforts but also reflects the concentrated release of improvement demand stimulated by both price and policy factors.

(Source: Yicai)