TAIPEI (Taiwan News) — The number of second-hand homes listed for sale has risen by 30% in Shanghai compared to the end of last year as the exodus of wealthy owners from China continues.

After Chinese Chairman Xi Jinping (習近平) assumed a third term in office, he has continued to push forward with his "Common Prosperity" campaign, which has seen crackdowns on tech companies, the closure of English tutoring schools, pressure campaigns on rich Chinese entrepreneurs, and aggressive measures to force the real estate industry to deleverage. This, coupled with the economic downturn due to zero-COVID policies, has led to China's rich fleeing in larger numbers.

In Shanghai, where many of China's high-net worth individuals are concentrated, the number of second-hand homes listed for sale by the end of October represented an increase of 30% compared to the end of last year, reported SCMP. The newspaper cited a representative from the real estate property agency 5I5J as saying that most rich clients are looking to sell off their properties as they predict a continued downturn in the housing market and are "either considering migration or planning to allocate part of their assets overseas."

As more and more millionaires plan to sell their houses to cash out and leave China, the Shanghai real estate market has taken a hit. According to the official website of the local housing administration bureau, Fangdi.com.cn, the 135,400 second-hand houses listed for sale at the end of October, marked an increase of 7.8% over September.

Eddy Zhou, a 48-year-old Shanghai resident, told the newspaper that because his family plans to immigrate to Portugal, he will sell his house, which is worth more than 10 million Chinese yuan (US$1.39 million). Zhou stated that he was trying to sell the house as quickly as possible to minimize the losses as he expects a further downturn in the market.

Zhou also expects more of the middle class to leave China in the coming years as they become increasingly concerned about the economic outlook.

In addition to the increase in the number of homes for sale, prices were also lower. According to China's National Bureau of Statistics, the prices of second-hand houses in Shanghai fell by 0.4% month-on-month in October. This is the first month-on-month decline in home prices seen in Shanghai since November 2021.

Local agents also said homeowners will have to lower prices by 10% to have a chance of drawing buyers. The latest report is consistent with news last month that Taiwanese businessmen were selling their restaurants, hotels, and other assets for cash with luxury homes in Shanghai plummeting by as much as 40% in value.