Guangzhou is rolling out a new pilot scheme aimed at boosting confidence in the housing market while helping residents upgrade to newer homes.

Under the programme, state-owned enterprise Guangzhou Affordable Housing Group will purchase eligible second-hand flats from homeowners planning to buy new residential properties in the city. The trial will run through to the end of 2026.

To qualify, properties must be valued below 3 million yuan (US$440,000), measure under 70 square metres and be located within Guangzhou’s ring expressway. Homes must also have clear ownership and be free from mortgages, legal disputes or safety concerns.

The initiative forms part of a broader package introduced by the Guangzhou Municipal Government to support stable property market growth. Measures include subsidies of up to 30,000 yuan for eligible homebuyers and higher housing provident fund loan ceilings.

The latest policies come as Guangzhou’s property market shows signs of recovery, with both new and second-hand home prices recording monthly gains earlier this year.