Upgrade demand becomes the key driver

• The buyer’s market continues, with the majority of overall demand stemming from upgrading demand. Favourable policies have stimulated demand for liquidity-rich assets in the core area, while the secondary market has not shown marked improvement.
• Although positive policies supported the stability of the primary market, transaction volume dropped to 790 units due to the decrease in supply. New projects launched in H1 2025 maintained a healthy sales pace, accounting for over 60% of transaction volume in Q3.

Supply pulls back remarkably

• Compared to the supply peak in Q2 2025, there were only 240 units in new projects launched in the quarter, reflecting the supply stability of Beijing’s luxury apartment market.
• The land market supply edged downward in Q3 2025, with seven land plots transacted by September. However, it is expected that only one plot in Changyang District will be developed into a high-end project.

Price declines in both the Primary and Secondary markets

• Landlords offered significant discounts, causing the price of luxury apartment projects to fall by 3.1% q-o-q, a slight expansion in decline compared to Q2 2025.
• The rise in supply across the high-end secondary residential market led sellers to offer significant discounts, causing prices to fall as sellers attempted to capitalise on the favourable policy environment to accelerate transactions.

Outlook: The downward trend may continue in the short-term

• The wait-and-see attitude is unlikely to reverse in the short-term. Considering land auction volume and buyer sentiment, the pricing trend in the primary market remains conservative.
• In the long-term, the improved financial conditions should spur buyers to make further decisions. Coupled with an abundant selection of high-quality supply, upgrade demand is expected to be further unleashed.