The Zhitong Finance App learned that the China Index Research Institute published an article stating that in the first three quarters of 2026, the national French auction market (355 cities, all property types) generally showed a pattern of “supply volume, recovery in transactions, price differentiation, and uneven heating and cooling”. The entire property sold 572,000 new lots, +29.6% year over year; 689,900 hanging lots were closed, up +23.9%; 166,359 lots were sold, +33.9% year over year; transaction amount was 228.58 billion yuan, +17.5% year over year. The growth rate of the number of transactions (33.9%) was significantly higher than the growth rate of transaction amount (17.5%), the unit transaction value declined, and the “price for volume” characteristic was outstanding.
Housing is the absolute main force in the French auction market. Residential lots were sold for 121,000 units, +45.5% year-on-year; the transaction amount was 13.93 billion yuan, +26.3% year-on-year, accounting for 57.3% of the total transaction amount. The residential clearance rate is 38.0%, far higher than full volume (24.1%), and is the type of property with the highest removal efficiency; however, the average residential transaction price was 7,991 yuan/㎡, down 8.2% from the previous year, and the characteristics of “volume increase and price reduction” are distinct.
The month of September (the first month of policy implementation) was impressive: 23,000 property transactions, +41.9% year over month, +9.6% month over month; transaction amount of 27.68 billion yuan, +18.9% year on month, +8.2% month on month; residential transactions of 16,905 units, +53.3% year on year, +8.2% month on month; residential transactions amount of 17.63 billion yuan, +45.8% year on month, +6.1% month on month. The intensive implementation of the 828 New Deal gave a clear boost to the market.
Cities are highly differentiated: the top 10 cities have a total of 59.46 billion yuan in residential sales, accounting for 45.4% of the country's total housing auction volume; the TOP50 cities have a total of 105.257 billion yuan, accounting for 80.4%. Shenzhen, Shanghai, and Beijing form the first tier, and the single-city residential auction transaction amount is close to or over 9 billion yuan.
The overall market for French auction houses
1.1 Supply side: the scale of tapestry continues to expand
572,000 new lots were added in the first three quarters, up 29.6% from 441,000 in the same period in 2025; 689,900 lots closed. Supply expansion stemmed from continued industry clearance, increased demand for disposal of debt-related assets, and an acceleration in the pace of disposal of non-performing assets by financial institutions.
1.2 Transaction side: increase in volume and decrease in price
166,000 lots were sold, +33.9% year over year; transaction amount was 228.58 billion yuan, +17.5% year over year. The growth rate of the number of transactions was more than 16 percentage points higher than the price growth rate. The unit transaction value declined, and the “price for volume” characteristics of the market were prominent.
AI Cartography: CI Buddy
1.3 Elimination efficiency and discount
The clearance rate was 24.1%, up 1.81 percentage points from 22.3% in the same period last year; the streaming rate was 69.3%, a slight decrease from 69.9% last year. Overall, about 70% of the closed lots have not been sold, and the pressure to remove the market is still strong. The transaction discount rate was about 74.0%, which was basically the same as the previous year.
Table 1: Core indicators for the first three quarters of the national legal auction market (full property caliber)
Structural analysis by property type
In terms of transaction value, residential buildings were dominated by RMB 13.93 billion, accounting for 57.3%; commercial RMB 51.16 billion followed, accounting for about 22.4%; industry at RMB 27.124 billion, land at RMB 11.623 billion, others at RMB 6.284 billion, and garage/parking spaces at RMB 1,492 billion. Housing and commerce together account for 79.65%, which are the two main pillars of transaction value in the French auction market.
AI Cartography: CI Buddy
Table 2: Transaction Structure by Property Type (First Three Quarters of 2026)
French auction of the housing market
3.1 Transaction size
In the first three quarters, 269,000 new residential lots were added, +34.2%; 319,000 lots closed; 121,000 lots were sold, +45.5% year-on-year, and the growth rate was significantly higher than full volume (+33.9%); the transaction amount was 13.93 billion yuan, +26.3% year-on-year. Housing is the core force driving overall transaction growth.
3.2 Decline in average price
The average residential transaction price in the first three quarters was 7,991 yuan/㎡, down 8.2% from 8,709 yuan/㎡ the previous year. The decline in prices is mainly due to a decline in the housing structure, increasing the share of low unit prices, peripheral areas, and old properties; second, evaluation prices and market prices continue to recede, and bidding prices tend to be cautious.
AI Cartography: CI Buddy
AI Cartography: CI Buddy
3.3 Leading removal efficiency
The residential clearance rate is 38.0%, which is significantly higher than full volume (24.11%), and higher than all other property types. The residential discount rate is about 79.0%, which is slightly narrower than the previous year.
Table 3: National Legal Housing Market Core Indicators for the First Three Quarters
Monthly Market Topics for September 2026
September is a key window for intensive policy implementation. The 828 New Deal was released on August 28 and came into effect in the same month. The mortgage interest rate discount policy is being promoted simultaneously, which has a direct impact on market expectations and transactions.
4.1 Overall property caliber
In September, the entire property sold 72,000 new lots in a single month, +21.2% year over month; 142,000 lots closed; 23,000 lots, +41.9% year over month, +9.6% month on month; transaction amount of 27.68 billion yuan, +18.9% year on month, +8.2% month on month; clearance rate 15.98%, flow rate 79.5%.
4.2 Housing Caliber
In September, 33,335 new residential lots were added in a single month, +29.8%, month-on-month + -10.0%; closed for sale, 62,836 hanging lots, 16,905 lots, +53.3%, +8.2% month-on-month; transaction amount was 17.63 billion yuan, +45.8% YoY, +6.1% month-on-month; average transaction price was 7,691 yuan/㎡, -3.0% YoY, -0.9% month-on-month; the clearance rate was 26.9%; residential buildings accounted for 63.7% of the full transaction amount in the month. Residential sales in September surged 45.8% year on year and 6.1% month on month.
AI Cartography: CI Buddy
AI Cartography: CI Buddy
AI Cartography: CI Buddy
Table 4: Core Metrics for a Single Month (All Properties vs. Homes) for September 2026
TOP50 City Law Auction Housing Transaction Value Ranking
Residential sales are highly concentrated in high-energy cities. TOP10 cities totaled 59.46 billion yuan, accounting for 45.4% of the country's total housing law; TOP20 cities amounted to 79.33 billion yuan, accounting for 60.6%; and TOP50 cities amounted to 105.26 billion yuan, accounting for 80.4%. Shenzhen (13.34 billion), Shanghai (9.72 billion), and Beijing (9.02 billion) form the first tier.
Table 5: Ranking of residential transaction value in TOP50 cities (January-September 2026)
Policy Impact Analysis: The 828 New Deal and Interest Rates on Residential Home Purchase Loans
6.1 828 New Deal - Restructuring the Commercial Housing Sales System
On August 28, 2026, the “Notice on Improving the Commercial Housing Sales System” came into effect, and various regions immediately issued implementation opinions. The core is the transformation from a “pre-sale system” to an “existing housing sales orientation”:
(1) Strengthening the sales orientation of existing housing: For projects that have obtained a pre-sale license from August 28, 2026, personal housing mortgage loans (including provident fund loans) can only be issued after completion and filing. The loan funds are paid to the fund supervision account through a fiduciary payment method, which essentially strongly binds the sale of new homes to the completed delivery, greatly reducing the risk of collapse.
(2) Implement the host bank system: From August 28, 2026, projects with newly signed loan contracts will implement the host bank system. In principle, development loan fund accounts and pre-sale fund supervision accounts will be unified with the host bank to achieve closed-loop management of project funds.
(3) Strengthen the supervision of pre-sale funds: Set key supervision limits to cover all remaining project construction costs of the project, deposit all buyers' down payments, personal housing loans, etc. into the supervisory account and withdraw them according to the construction node.
(4) Current housing deposit supervision: Existing housing sales projects may charge a deposit of no more than 5% of the total housing price, and the full deposit amount is deposited into the supervisory account.
6.2 Interest Rate Discounts on Home Purchase Loans for Residents - Finance [2026] No. 95
The “Notice on Implementing the Interest Rate Discount Policy for Residential Home Purchase Loans” (Finance (2026) No. 95) was jointly issued by the Ministry of Finance, the People's Bank of China, the General Administration of Financial Supervision and other departments to directly reduce the cost of housing purchase financing for residents through financial interest rates:
(1) Target of support: Residential home purchase loans issued to operating banks. Eligible loans can enjoy financial interest discounts.
(2) Capital sharing: Interest rate discount funds are borne by the central finance and local finance at a ratio of 90% and 10%, respectively. The provincial finance department independently determines the ratio at the provincial level and below to ensure national uniformity and sustainability.
(3) Managing banks: Banks that carry out commercial personal housing loan services can handle them, covering a wide range of areas; managing banks are responsible for qualification review, fiduciary payments, classification statistics, and monthly reporting.
6.3 The impact of the two policies on the French housing market
(1) Demand side - Home purchase costs are declining, and the price advantage of French housing auctions has been partially diluted. Interest rates on loans have lowered mortgage interest rates, compounded by lower down payment ratios and lower interest rates on stock mortgages, expanding the affordability of potential buyers, and creating incremental demand for French home buyers; however, they have also reduced the “price discount” appeal of French homes compared to new homes. French homes require further concessions to maintain competitiveness. This is consistent with the observation that the average price of residential transactions fell 8.2% year on year.
(2) Supply side - increasing the sales orientation of existing housing, and maintaining a high level of supply in the medium to short term. Sales of new homes are being promoted to “delivery after completion”, and the capital return cycle for development companies is lengthened, and some projects with tight capital chains may enter the judicial disposition process earlier; looking at existing housing sales in the long term reduces delivery risks and boosts confidence in buying homes, which may divert some of the original to needy customers in France.
(3) Price side - activity has increased, but prices are difficult to increase. The year-on-year decline in average residential transaction prices reflects a decline in the housing structure and a correction in market prices; the role of the policy is more reflected in “releasing inventory” rather than a rebound in prices.
(4) Regional side - high-energy cities benefit more, and differentiation intensifies. Policy dividends and market resources are concentrated in core cities, and the TOP50 cities account for more than 80% of residential transactions; third- and fourth-tier cities are constrained by population and demand, and the pressure to eliminate residential sales is still prominent.
(5) Risk Reminder - The specificity of house auctions weakens policy transmission. There are differences between new and second-hand housing in terms of tax liability, vacancy delivery, and loan approval. Some banks are cautious about French mortgage loans, and the inclusive effects of interest rate discount policies may be discounted in the field of legal auctions.