Beijing’s second-hand housing market has undergone major changes since 2020. A prolonged market correction, sweeping tax reforms, and relaxed purchase restrictions have reshaped the landscape for both buyers and sellers. Whether you are an expatriate looking to sell your Beijing property before leaving China or a foreign professional considering your first purchase, this updated guide covers everything you need to know in 2026.

The Current State of Beijing’s Resale Market

The resale market now dominates Beijing’s residential transactions. With very little developable land remaining in urban areas, new housing construction has shifted to the suburbs while second-hand properties account for the majority of transactions within the Fifth Ring Road.

However, the market context has changed dramatically. Following the government’s “Three Red Lines” policy introduced around 2020 to curb developer debt, the property sector entered a prolonged correction. Major developers defaulted, consumer confidence dropped, and prices in many areas declined. As of 2026, the government’s focus has shifted firmly toward stabilization, with a series of support measures aimed at reviving demand.

Key Policy Changes You Need to Know (2024-2026)

Several major regulatory changes directly impact second-hand housing transactions in Beijing.

The first concerns relaxed purchase restrictions, effective December 2025. Non-local residents now need only two years of social insurance or income tax records to buy within the Fifth Ring Road, reduced from three years. Outside the Fifth Ring Road, only one year is required, down from two. Multi-child families (two or more children) can now purchase an additional property within the Fifth Ring Road. Local multi-child families can own up to three homes, while non-local multi-child families with qualifying records can own up to two.

The second major change involves new tax incentives, effective since December 2024. Deed tax for first homes or second homes under 140 square meters has been standardized at 1% nationwide, including Beijing. Second homes above 140 square meters now pay 2% deed tax, down from 3% in Beijing. Properties held for at least two years are now exempt from VAT when resold, aligning Beijing with the rest of China. A personal income tax refund is available for homeowners who sell and repurchase within one year.

Third, mortgage policies have been eased. Minimum down payment for second homes using the housing provident fund has been reduced to 25%, down from 30%. Both new and existing mortgage rates have been cut to historic lows.

How Much Does a Real Estate Agency Charge?

Agency commissions for second-hand housing transactions in Beijing remain regulated. The standard commission should not exceed 2% of the transaction price, with a maximum of 2.2% for complex transactions. In practice, most agencies charge between 1% and 2.2%. Be aware that some agencies may add a “guarantee service fee” of around 0.5% on top of the standard commission. Always clarify the total fee structure before signing any agency agreement, and ensure all fees are documented in writing.

Buy First or Sell First?

This remains one of the most critical strategic decisions for anyone trading up or down in the Beijing market. The answer depends on current market conditions.

In a seller’s market where prices are rising quickly, buying first makes sense. You lock in your next property before prices climb further, then sell your current home during the agreed transaction period, typically six months. This was the dominant strategy before 2020.

In the current buyer’s market, selling first is safer and recommended. With prices stabilizing after years of decline, the risk of missing a sharp price increase is low. Selling first gives you confirmed funds, a stronger negotiating position when buying since cash buyers can often secure 2-5% discounts, and no risk of being stuck with two mortgages or failing to sell within a contractual deadline.

Risks and Traps to Avoid

For buyers, three areas require particular attention. First, due diligence: beyond the standard agency checks, independently verify the property’s ownership history, check for any liens, disputes, or outstanding debts registered against the property. Second, mortgage release: if the seller’s property still has an active mortgage, never agree to use your purchase payment to help release their mortgage, as this exposes you to significant risk if the seller defaults or disappears. Insist that the seller arranges their own mortgage release. Third, fund supervision: all payments beyond the initial deposit should go through an official escrow or fund supervision account. The funds are only released to the seller after the property title transfer is completed.

For sellers, the main risks relate to buyer reliability. Thoroughly assess the buyer’s financial situation, including whether their funds depend on selling another property, whether they need a mortgage, and their timeline. Collect a substantial deposit before online contract registration — a minimum of 10% of the selling price is recommended. Be especially careful with the online contract registration step: once registered, cancellation requires both parties and the agency to appear together at the registration bureau, giving the buyer leverage if they decide to walk away.

Special Considerations for Foreign Nationals

Foreigners can buy one residential property for self-use in Beijing, provided they hold a valid long-term residence permit and can prove at least one year of continuous work or study in China. Required documents include a passport with notarized translation, proof of employment or study, and a home purchase eligibility certificate from the Beijing housing authority.

When selling as a foreigner, be aware of the fund repatriation process. You will need to work with your bank to convert RMB proceeds to foreign currency and transfer them abroad. This requires proper documentation of the original purchase, the sale transaction, and tax clearance certificates. Scout Real Estate can guide you through this process — it is one of our core services.

How Scout Real Estate Can Help

Whether you are buying or selling second-hand property in Beijing, our bilingual team handles the entire process: market valuation, buyer/seller screening, contract negotiation, online registration, and fund supervision coordination. We have nearly two decades of experience navigating Beijing’s complex real estate regulations on behalf of foreign clients.

Contact us for a free consultation.

Last updated: March 2026