Executive Summary
Key takeaways from the latest housing market initiatives in China:
- Multiple Chinese cities, including Shenzhen, Wuhan, and Putian, are launching government-led housing promotions during the National Day and Mid-Autumn Festival holidays, featuring subsidies and discounts.
- Innovative policies such as the removal of no lower price limits aim to accelerate inventory clearance, particularly for hard-to-sell properties.
- Major developers like Longhu Group and China Jinmao are intensifying marketing efforts with limited-time offers to capitalize on seasonal demand.
- Market data shows a 9% year-on-year increase in secondary housing transactions in key cities, though new home sales remain subdued.
- Analysts from China Index Academy emphasize that stabilizing expectations is crucial for market recovery, with further policy measures expected in the fourth quarter.
Golden Week Sparks Unprecedented Housing Market Interventions
As China’s National Day and Mid-Autumn Festival holidays approach, local governments are deploying aggressive measures to reinvigorate the property sector. With transactions slowing in many regions, authorities are leveraging the festive season to stimulate demand through direct subsidies, adjusted loan policies, and innovative pricing strategies. The no lower price limit initiative, prominently featured in cities like Putian, represents a significant shift in regulatory approach, allowing developers greater flexibility in pricing difficult inventory. This coordinated effort underscores the urgency to bolster consumer confidence and address persistent market weaknesses.
Housing departments across numerous municipalities are spearheading campaigns that combine online and offline engagement models. These initiatives aim not only to increase transaction volumes but also to enhance the overall purchasing experience for buyers. The timing aligns with historical trends where holiday periods see heightened real estate activity, though current economic headwinds necessitate more robust intervention. Experts suggest that these measures could set a precedent for future market stabilization policies, particularly if they demonstrate tangible success in boosting sales.
Government-Led Housing Initiatives Gain Momentum
Local housing authorities are taking center stage in orchestrating promotional activities that bring together developers, real estate associations, and financial institutions. The scale of these efforts varies by region but shares common objectives of reducing purchase barriers and clearing inventory.
Wuhan’s Housing Provident Fund Adjustments
On September 30, the Wuhan Housing and Urban Renewal Bureau (武汉市住房和城市更新局) announced temporary changes to housing provident fund loan assessment standards. Between October 1, 2025, and June 30, 2026, families applying for housing provident fund loans for new home purchases will not have one currently listed property counted toward their loan quota determination. This policy effectively increases borrowing capacity for prospective buyers who own existing properties, potentially unlocking pent-up demand from upgrade purchasers. The move reflects broader efforts to make financing more accessible without compromising financial stability.
Shenzhen’s Multi-District Promotion Events
Shenzhen’s construction bureau (深圳市住建局) is collaborating with numerous developers to host specialized property events across districts including Futian, Luohu, and Nanshan. Nearly 100 ongoing projects are participating with limited-time discounts and gifts, significantly reducing entry costs for homebuyers. The city has organized exhibitions at prominent locations like the Qianhai Ice and Snow World metro station and the Nanshan Museum, featuring projects from developers such as Hongrongyuan and Poly Property. These events employ hybrid online-offline models to maximize reach and convenience, addressing both affordability and accessibility concerns in one of China’s most expensive housing markets.
Innovative Policies: No Lower Price Limits in Focus
The most striking development in recent housing promotions involves the explicit removal of pricing constraints for certain property types. This no lower price limit approach grants developers unprecedented flexibility to adjust prices according to market conditions and inventory characteristics.
Case Study: Putian’s Unrestricted Pricing
The Putian Housing and Urban-Rural Development Bureau (莆田市住建局) has explicitly stated that for holiday promotional activities, there will be no lower price limit on sales prices for commercial housing units. This policy particularly applies to challenging inventory such as remaining units, remote developments, and less desirable floor positions. By eliminating price floors, authorities hope to accelerate the disposal of stagnant inventory that has weighed on market vitality. The directive encourages developers to formulate aggressive discount strategies based on their specific remaining stock and sales progress, creating a more dynamic pricing environment that could attract bargain-seeking investors and end-users.
Yiwu’s Subsidy Programs
Yiwu city announced on September 29 that it will implement a new round of property policies starting October 1, featuring 200 million yuan in housing purchase subsidies. The program includes first-time buyer subsidies of 1,000 yuan per square meter and additional 100,000-200,000 yuan incentives for multi-child families. Such direct financial support complements the no lower price limit approach seen elsewhere, creating multiple pathways to stimulate demand. The combination of removed pricing restrictions and substantial subsidies represents a comprehensive attempt to address both affordability and liquidity concerns in the local market.
Developer Strategies for Golden Week Sales
Major property developers are aligning their fourth-quarter sales strategies with government initiatives, deploying targeted campaigns to maximize holiday period transactions. The convergence of public and private sector efforts creates a potent stimulus environment during this critical sales window.
Longhu Group’s Nationwide Campaigns
Longhu Group (龙湖集团) has launched its “Golden September and Silver October” purchasing season activities across multiple cities, covering residential, commercial, and parking space products. The company is offering time-limited benefits including 1% discount subsidies, special 3% discounts for teachers, group purchasing discounts for parking spaces, and live streaming specials. A company representative indicated that additional系列活动 will continue through the holiday period, leveraging both digital and traditional marketing channels. This comprehensive approach demonstrates how major developers are synchronizing with municipal campaigns to amplify impact.
China Jinmao’s Regional Discounts
China Jinmao (中国金茂) announced multiple purchase preferential activities on September 30 for projects in Shandong provinces including Qingdao, Jinan, Yantai, and Weifang. Offers include limited special discount units, 2% discounts for contracts signed within seven days, and specially priced units authorized by general managers. The company’s holiday marketing plan will maintain the momentum established in September, combining festive themes with practical incentives like visit gifts, travel reimbursement, and cross-brand collaborations. Such tactics aim to generate market attention while providing tangible economic benefits to serious buyers.
Market Performance and Analyst Insights
Recent transaction data and expert commentary provide context for understanding the potential impact of these holiday initiatives. While certain segments show resilience, the broader market continues to face challenges that require sustained policy support.
Transaction Data from Key Cities
According to China Index Academy statistics, primary housing transactions in key cities declined slightly year-on-year during the first three quarters of 2025, with completed properties outperforming pre-sale units—the former now accounting for 35.4% of sales. The secondary market maintained a volume-over-price trend, with transactions in 30 key cities increasing approximately 9% year-on-year. Specific city data reveals substantial variations: as of September 28, Shenzhen’s secondary residential transactions increased nearly 30% year-on-year, Shanghai saw nearly 20% growth, while Beijing, Hangzhou, Chengdu, and Xiamen all recorded increases exceeding 10%. This divergence highlights the uneven nature of the recovery and underscores why targeted local interventions are necessary.
Expert Commentary from China Index Academy
Cao Jingjing (曹晶晶), General Manager of the Index Research Department at China Index Academy (中指研究院指数研究部), emphasized that “stabilizing expectations is key to stopping the decline and stabilizing the property market.” She anticipates that policies already announced will be further implemented starting in October, while additional incremental policies remain possible to activate housing demand. Regarding the no lower price limit approach, she noted that such measures could help address specific inventory challenges but must be balanced with overall market stability concerns. The analyst predicted that new supply from land acquired by developers in core cities during the first half of 2025 will gradually enter the market in the fourth quarter, potentially supporting新房 sales in these regions.
Regional Variations and Future Outlook
The effectiveness of housing market interventions continues to vary significantly across China’s diverse property landscape. Understanding these geographical differences is essential for investors and policymakers seeking to navigate the sector’s evolution.
Core vs. Non-Core City Dynamics
China’s property market recovery remains bifurcated, with core cities showing stronger momentum while many non-core cities continue to struggle with oversupply. Cities that have seen limited new project launches in recent years will primarily focus on inventory reduction, maintaining the polarization trend observed throughout 2025. The no lower price limit policy likely holds greater significance in markets with substantial stagnant inventory, where price flexibility could trigger transactions that would otherwise remain dormant. In contrast, premium developments in first-tier cities may see less dramatic pricing adjustments due to relatively healthier demand fundamentals.
Policy Implications for Investors
The current wave of housing promotions represents both short-term opportunities and longer-term strategic considerations for market participants. The removal of no lower price limits in certain jurisdictions creates potential for value acquisition in specific property segments, particularly for investors with higher risk tolerance. However, the sustainability of these measures remains uncertain, and investors should monitor whether similar policies extend beyond the holiday period. The coordinated nature of these interventions—combining financial subsidies, regulatory adjustments, and developer incentives—suggests a more sophisticated approach to market management that may inform future policy developments.
Synthesizing Market Dynamics and Forward Guidance
The concerted efforts by Chinese local governments and developers to stimulate housing demand during the holiday period reflect both immediate pressures and strategic recalculations. The no lower price limit policy emerges as a particularly innovative tool for addressing specific inventory challenges, though its broader application remains limited to selected cities and property types. Market data suggests that these measures are launching against a backdrop of gradual improvement in secondary markets but continued weakness in new home sales outside core urban centers.
Looking ahead, investors should track the implementation and effectiveness of these policies through fourth-quarter transaction data, particularly focusing on whether the removal of no lower price limits generates sustainable sales momentum or merely pulls forward future demand. The differentiation between core and non-core cities will likely intensify, requiring more nuanced investment approaches. Market participants would benefit from maintaining flexibility in their strategies while monitoring for potential nationwide policy developments that could emerge if local initiatives prove successful. As the property sector remains crucial to China’s economic stability, these holiday promotions represent an important test case for market-led recovery mechanisms within a managed framework.