Multiple Chinese regions to purchase existing housing to reduce inventory

Amid efforts to reduce housing inventory and improve supply, Hangzhou's Fuyang District has launched a housing trade-in program, while Haikou is publicly soliciting newly built, unsold homes for use as affordable rental units. The moves signal a broader 2026 trend of local governments employing market-based policies to stimulate housing circulation and provide targeted support for residents and key talent.

On January 25, Hangzhou Fuyang Leju Investment Operation Group, a wholly-owned subsidiary of Hangzhou Fuyang Urban Construction Investment Group, launched a "trade-in old for new" commercial housing program in Fuyang District. The program acquires eligible old houses within a limited quantity, scope, and timeframe, issuing trade-in discount vouchers to the