(Yicai) June 26 -- Sales of old and small second-hand houses, those built more than 20 years ago before the property market boom, with a floor area of below 45 square meters, and likely without elevator, picked up in several major Chinese cities.

The sales volume of second-hand homes more than 20 years old accounted for over 40 percent of the total pre-owned house sales in Shenzhen in the first five months of the year, with the peak at 51 percent in February, according to data from the local branch of real estate agency Centaline Property. The ratios were only 37 percent and 24 percent last year and in 2022, respectively.

The proportion of small second-hand homes to the total in Shenzhen also increased to some extent in the five months ended May 31 from a year earlier, Centaline Shenzhen data also showed.

Similar trends were also reported in Hangzhou by the market research institute under Chinese realtor 5i5j, in Shanghai by the local branch of Centaline, and in Chengdu by the Beike Research Institute.

Old and small apartments attract many buyers with limited paying capabilities as their prices recently slumped because of the constant adjustments of second-hand home prices and the fact that owners purchased them long ago at very low prices, so they are more willing to accept lower offers, Chen Wenjing, market research director at the China Index Academy, told Yicai.

Another reason for the increased sales of old and small second-hand houses is that they are mostly in downtown areas, where healthcare and education services are excellent, Chen added.

Moreover, China’s constant optimization and improvement of old residential communities with its urban village revitalization initiative in recent years has offered these old pre-owned homes better living experiences, Chen noted. For example, some old communities have installed elevators.

Most of the old second-hand houses sold are cheap and small but in excellent locations, which are suitable for young buyers with limited budgets or middle-aged with high educational needs for their children, said Guan Rongxue, senior analyst at the Zhuge Data Research Center.

Even though this trend of high sales of old and small pre-owned houses seems to reflect that buyers’ budgets are shrinking, it also shows that many owners are planning to improve their living conditions by selling their places to acquire newly built houses or second-hand ones in better conditions, Guan pointed out, adding that this will gradually facilitate the overall recovery of the property market.  

Editors: Tang Shihua, Futura Costaglione