Guangzhou is stepping up efforts to revive its property market with a package of measures that combines direct government purchasing of second-hand homes with financial incentives for residents looking to upgrade.

The latest initiative sees Guangzhou Affordable Housing Group – a state-owned enterprise – launch a pilot programme to purchase eligible second-hand residential properties from homeowners, freeing them to buy new homes. The trial runs until the end of 2026.

Properties must be priced at no more than 3 million yuan (US$440,000), have a floor area of less than 70 square metres, and sit within the city’s ring expressway. They must also have clear ownership, be free of mortgages and seizures, and carry no safety hazards.

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Residents who sell under the scheme must purchase a new commercial residential property within Guangzhou within 180 days, with the sale proceeds held in a dedicated bank account to ensure transparency.

Homes acquired by the state-owned enterprise will be prioritised for use as affordable housing, talent apartments and accommodation for residents displaced by urban renewal projects.

This follows a broader package of eight measures announced by the Guangzhou Municipal Government in late April. Chief among them is a cash subsidy of up to 30,000 yuan (US$4,394) – equivalent to 1 percent of the new home’s mortgage – for residents who buy a new property and sell an existing one within the same year. Guangzhou has earmarked 200 million yuan for the subsidy programme, available until funds run out.

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The city has also raised housing provident fund loan ceilings to 1 million yuan for single applicants and 2 million yuan for joint applicants.

The measures come against a backdrop of tentative recovery. Commercial housing sales in Guangzhou rose year-on-year in the first quarter of 2026, with both new and second-hand home prices rising month-on-month in March – part of a broader stabilisation trend across China’s major cities after years of property sector downturn.