Beijing — China’s real estate sector, long considered a pillar of economic growth, is bracing for a major overhaul. Analysts note that the next five years will see a shift from sheer housing supply toward quality living standards, aligning property development with social welfare and public livelihood priorities.
The Ministry of Housing and Urban‑Rural Development reported that real estate and construction contributed 13% of China’s GDP in 2024. Yet public demand has evolved: housing is no longer about access alone, but about personalized, diversified living conditions shaped by ageing demographics, declining birth rates, and urban migration.
Experts stress that the era of “build first, hope people will come” is over. Instead, data‑driven strategies must guide development, focusing on affordable housing for young graduates and urban migrants in high‑growth hubs. During the 14th Five‑Year Plan, China built more than 11 million units of affordable and resettlement housing, benefiting over 30 million people.
The new cycle emphasizes “improved housing” and larger unit sizes, with homes over 120 square meters becoming mainstream in major cities. Policymakers are also expected to gradually roll back purchase restrictions and ease mortgage burdens, signaling a more consumer‑friendly approach.
For the global economy, China’s property overhaul carries weight. As the world’s second‑largest economy recalibrates its housing model, ripple effects will be felt in construction demand, commodity markets, and investment flows. The transition highlights how property markets are no longer just national concerns—they are global indicators of structural change.
