New policies accelerate the release of demand

• A visible market recovery was seen in Q4 2024, with demand growth particularly significant in the Chaoyang and Fengtai districts. A total of 1,330 luxury apartment units were sold in Q4 2024, the highest level this year and up 44.7% q-o-q.
• On 1 October, Beijing implemented new housing policies, including a reduction in down payment requirements and lower social security requirements for non-Beijing residents. These policies have improved housing affordability and stimulated new demand.

New supply almost double that of Q3 2024

• Stimulated by the further loosening of policies, developers accelerated the launch of new houses during the quarter. A total of 731 new units were launched in Q4 2024, nearly twice that of the previous quarter.
• Land supply picked up in Q4 2024, with 10 plots transacted by mid-December. Three plots are expected to be developed into high-end projects, which will hopefully alleviate future supply shortages.

The decline in high-end secondary prices narrows

• Developers offered greater discounts to boost sales towards the end of 2024. Luxury apartment prices dropped by 1.3% q-o-q in Q4 2024. In the secondary market, sellers started offering fewer price concessions as demand increased.
• Rents fell by 2.2% q-o-q. Although supply pressure eased slightly in Q4 2024, leasing demand remained soft. More landlords began offering direct rent reductions to facilitate transactions during the quarter.

Outlook: Price declines are expected to narrow as demand gradually recovers

• The new housing policies are anticipated to continue to revive market sentiment and strengthen the confidence of both developers and homebuyers. The gradual release of new demand and projects is likely to facilitate sales stabilisation in 2025.
• Further price concessions are expected from developers to boost sales next year. However, driven by recovering demand and high-priced new projects, price declines in 2025 are expected to be narrower compared to this year.