Market sentiment recovers in Q4 2024

• In September, the government introduced additional policies to unlock potential housing demand. The removal of purchase restrictions, coupled with the low interest rate environment, has contributed to a rebound in the sales of high-end residential properties.
• The primary high-end residential units sold rose by approximately 3% q-o-q, while enquiries for secondary high-end properties also increased noticeably. Upgrading needs remained the primary driving force, as buyers seek to relocate to downtown or larger homes.

Multiple projects launch additional units

• As demand warmed up, multiple existing projects launched new phases. Alongside fresh market entries, the new supply totalled 1,783 new units. About 60% of the new units came from the Tianhe and Panyu Districts.
• Additionally, six high-end projects were completed in Q4 2024, adding 2,041 units to the total stock.

The decline of property prices slows

• The rebound in transactions slowed the overall price decline. For primary and secondary high-end residential projects, the average price declined by 1.0% and 1.5% q-o-q, respectively.
• The rental demand for high-end residential properties remained stable this quarter. Ahead of the Lunar New Year, some landlords offered discounted rates to avoid prolonged vacancies. Rents for high-end properties edged downward by 0.3% q-o-q.

Outlook: Policy relaxation may help stabilise the market

• The housing and monetary policies are expected to remain supportive for a housing market recovery in the near-term, including further reducing lending costs and removing restrictions to house purchases.
• Primary houses are likely to see steady pricing in 2025 with limited supply, while secondary high-end properties may experience a marginal decline. For rents, with sustained rental demand, prices are projected to remain stable.