In March, Shanghai's second-hand home sales hit a five-year high, but some sellers are starting to raise their prices.

Have you been getting spammed lately?

The Shanghai second-hand housing market really has gone viral. The latest data shows that in March, there were 31,216 second-hand homes signed online across the city, setting the highest single-month record in nearly 5 years. The last time transaction volume topped 30,000 units was in March 2021.

A market rebound is supposed to be a good thing, but many buyers are worried, because some sellers have started jumping their asking prices.

Today, a friend told me that second-hand homes are really hard to negotiate. With this budget, it’s better to buy a new home. The designs of new homes really make people’s eyes light up.

Some people looking for a 7 million-plus property are directly hit with a 500,000 yuan price increase; and there are also buyers who negotiated a 2 million yuan listing, only to have it raised by 50,000 yuan the next day. What’s more, some sellers raise their prices by 150,000 yuan before the buyer even tries to bargain.

Based on the data, in March, the average listing price of second-hand residential properties in Shanghai rose slightly month-on-month by 0.08%, ending 33 consecutive months of decline. Naturally, the number of sellers adding price and holding out on sales, as well as people changing their minds on a temporary basis, is becoming more and more common. Several popular residential communities directly raised prices by 100,000 to 500,000 yuan. Others even paused listings and are waiting to see how the market looks.

Sellers’ mindset is understandable, but industry experts also say that what’s “hot” in the market right now is transactions, not prices.

Because this round of rebound depends on the release of demand from people with urgent needs. Second-hand homes under 3 million yuan have long made up the majority of second-hand home buying and selling in Shanghai. For example, in March, just-needed homes under 3 million yuan accounted for as much as 72%, making them absolutely the main force in the market. These buyers are extremely sensitive to prices; blindly raising prices will only drive customers away. From the supply side, the overall number of listings in Shanghai’s property market is still within a reasonable range—this is not a situation where it’s impossible to find a home.

After agreeing on a price, one seller added another 80,000 yuan—only for the buyer to simply walk away. In the end, not only did the seller have to hold the property for an extra month, but the final transaction price was also 80,000 yuan lower than before.

By contrast, those sellers who are genuinely willing to sell proactively cut their prices, and the number of home viewings during the holiday period has gone through the roof.

One analyst reminds us that for sellers, the best strategy is to price in line with recent transaction prices—don’t raise prices blindly, and don’t change your mind at the last minute. When you encounter sincere buyers, close the deal decisively and secure the sale. Don’t miss the window for a home-swap just because of blind price hikes. And for buyers with urgent needs, when faced with unreasonable jump pricing, they can also make a rational decision to observe the market—because ultimately, the power to choose still rests with the homebuyers.