Institution: Transactions of residential properties below 2 million RMB in Beijing, Shanghai, and Shenzhen increased in October.

Kerui Real Estate Research shows that, according to CRIC monitoring data, the proportion of transactions in the low-price segment of Beijing, Shanghai, and Shenzhen, i.e. below 2 million RMB, in October 2025 increased significantly compared to the previous month and the same period last year. Taking Shanghai as an example, in October 2025, the proportion of transactions for properties below 2 million RMB was 48.72%, an increase of 2.16 percentage points compared to the previous month and 8.93 percentage points compared to the same period last year; the market share is showing a further expansion trend. For Shanghai and Shenzhen, the entry of luxury properties priced in tens of millions into the new housing market is increasingly diverting high-end customers from the second-hand housing market, showing a typical substitution effect. In October 2025, the proportion of transactions for properties priced above 8 million RMB in Shanghai and Shenzhen remained stable or decreased compared to the previous month. Currently, with the "improvement in quality and reduction in quantity" of new housing supply combined with the introduction of new regulations for products with high floor area ratios, the differences between the customer groups for new and second-hand housing are becoming more significant. High-end customers are concentrating on new housing, while the most essential demand customers are being squeezed into the second-hand housing market.