(Yicai) Sept. 24 -- Second-hand home prices have risen noticeably in several parts of Shanghai since the start of the year, with gains of as much as 20 percent in some neighborhoods, as the supply of lower-priced properties dries up, according to local property market professionals.

The near-disappearance of lower-priced listings has been one of the most notable changes in the city's pre-owned housing market, Zhang Shaojun, head of a branch of property realtor Lianjia near Shanghai's East Bund in northeast Yangpu district, told Yicai.

Prices in the area hit their low point between late last year and early this year, Zhang said, adding that they began a slow recovery after the Chinese New Year holiday, and the upward trend has become more pronounced this quarter.

Prices for some older apartments in the area have climbed to more than CNY45,000 (USD6,700) per square meter from about CNY35,000 to CNY40,000 (USD5,210 to USD5,960) per sqm at the start of 2026, Zhang noted. Prices for some relatively new homes have also risen to about CNY90,000 per sqm from early-year lows of around CNY80,000 per sqm.

“This is a broad-based increase,” he said. “Transaction prices for older apartments, near-new homes, and properties along subway lines in the area

have all gone up, with gains ranging from roughly 8 percent to 20 percent.”

Among recent second-hand homebuyers in the area, Zhang has also seen an increase in people working in sectors such as software and finance. Most are aged between 35 and 45 and are mainly buying homes to upgrade their living conditions.

A similar trend has emerged around Shanghai West Railway Station in northwest Putuo district, according to Shi Bing, head of Lianjia's flagship store for the area. Prices in this area bottomed out early this year, and have increased since March and particularly since July, Shi said.

“July is typically a slow season for the second-hand housing market, but viewing activity and transactions were far stronger than expected,” he noted.

The area around the station is characterized by properties built in the 1980s and 1990s and has long been regarded as one of the lower-priced areas in Shanghai's central urban districts.

Fewer Listings

At the start of the year, a typical older apartment in this area -- around 50 sqm, on a middle floor, and without an elevator -- sold for about CNY1.8 million to CNY1.9 million (USD268,000 to USD283,000), Shi said. That has risen to between CNY2 million and CNY2.2 million, with the price per sqm climbing from about CNY35,000 to CNY38,000 to over CNY40,000.

Shi said higher viewings and transactions has rapidly reduced the number of homes available for sale in some communities. Previously, a typical complex may have had more than 40 listings. That is now down to around 15, so buyers have fewer and fewer options, he said.

“It used to be a case of houses looking for buyers,” Shi said. “Now it is a case of buyers looking for houses.” As a result, his team's focus has shifted toward finding more listings.

In addition to these two areas, five other subareas in the city center have also seen notable increases in used home prices, according to a representative for Lianjia Shanghai.

Prices for pre-owned residential properties in Shanghai edged up 0.2 percent in February from January and have increased every month since then through August, according to the latest official figures.

Zhang attributes the recovery to the combined effects of policy support, demand, the composition of available housing stock, and changes in market expectations. The effects of real estate stimulus policies across China are gradually becoming apparent, according to Zhu Jin, chief analyst for real estate, construction, and REITs at CSC Financial.

As Shanghai’s market stabilizes, the used home markets in Shenzhen, Beijing, and Guangzhou are highly likely to follow suit, Zhu said. He expects the recovery in leading cities to gradually spread to other markets, although the pace and magnitude of the rebound in top-tier cities such as Shanghai are likely to continue outstripping the national average.

Editor: Tom Litting