Expectations are building in Shanghai and other major Chinese cities that home prices are finally bottoming out after a punishing six-year slump, triggering a wave of buyers actively hunting for bargains. The shift in sentiment, driven by recent policy easing and brisk transaction volumes, marks the most concrete sign of life in a sector that has dragged on the world’s second-largest economy.
The renewed buyer interest follows a prolonged downturn that saw national new home prices continue to fall as recently as May 2026, dampening hopes of a quick recovery. However, the narrative is splintering. While the broader national market still grapples with weak demand, first-tier cities are flashing signs of a turnaround, with buyers sensing that the steepest price cuts are now in the rearview mirror.
According to a report by the South China Morning Post, it is now firmly a buyer’s market in these urban cores, where signs of recovery have returned bargaining power to home purchasers. This dynamic has been amplified by a disconnect between the property market and the recent stock market rally, as homebuyers who held out for better deals are now stepping off the sidelines to lock in lower prices before the window closes. A separate analysis from The Business Times noted that while the national market still faces a massive overhang of millions of empty or unfinished apartments, prices in several of the country’s biggest cities are rebounding, a pattern that has previously signaled a turning point.
Policy support is fueling the cautious optimism. Authorities have rolled out a series of easing measures aimed at stabilizing the crucial sector, which have helped accelerate transactions in premium urban districts. Analysts suggest that the current price stabilization in cities like Shanghai could serve as a bellwether for a broader national recovery, provided the buying momentum can be sustained through the second half of the year.
