Real estate in big cities showing more stabilizing signs after gradual declines

In a tone-setting conference, China's policymakers outlined specific property measures focused on risk prevention, stock optimization and supply improvement, which is key to the stable and healthy development of the real estate sector, said industry experts on Sunday.

Being an important pillar of the nation's economy, the property market is closely associated with overall economic performance, including financial policies and capital markets. Therefore, bolstering real estate market stability calls for consistent efforts and further supportive measures, they said.

The Political Bureau of the Communist Party of China Central Committee held a meeting to analyze and study the current economic situation and overall economic work on April 25.

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The meeting affirmed the positive changes observed in the real estate sector over the past two quarters. Thanks to a series of supportive housing policies, property sales, prices and land markets in major cities have shown signs of stabilizing after a period of gradual decline, laying a solid foundation for further recovery.

Two major strategic directions were highlighted — intensifying urban renewal initiatives, including the orderly advancement of urban villages and dilapidated housing renovations, and accelerating the establishment of a new real estate development model.

"The meeting further stressed the significance of urban regeneration, and urged greater efforts to promote the renovation of urban villages and dilapidated houses," said Yan Yuejin, deputy head of the Shanghai-based E-House China R&D Institute.

"This is also one of the key tasks for the year, as the renovation of urban villages would not only improve people's living environments, but also activate more market demand," Yan said.

The meeting also highlighted that efforts should be made to establish a new model of property development at an accelerated pace, increase the supply of high-quality housing, optimize the purchase policy of existing commercial housing and continue to consolidate the stability of the market.

"It is evident that the meeting mentioned the positive changes seen in the real estate market in the past two quarters," said Ma Hong, a senior researcher from Guangzhou, Guangdong province.

"Boosted by a series of supportive measures, the downward tendencies in sales, home prices and land have been checked, laying a solid foundation for market recovery. There will be great demand for high-quality housing as the nation's urbanization continues, which means that there is still room for further growth in the property sector," said Ma.

Chen Wenjing, director of research at the China Index Academy, said she was encouraged by the major meeting's spirit in further consolidating property market stabilization.

"The conference has prioritized the establishment of a new real estate development pattern, which will have a positive impact on the stable and healthy development of the property market over the mid to long-term," Chen said.

"We see a lot more policies to facilitate the creation of the new model and optimize the purchase of existing commercial housing in the pipeline, and tailored policies would be introduced in a timely manner according to the market's status quo," she added.

Since the beginning of the year, quite a few cities have released housing vouchers in relocation projects to stimulate buying sentiment, with more than 20 regions having optimized their housing voucher measures. These efforts are expected to integrate the new home and pre-owned market, as well as reduce market inventories.

Notably, the meeting for the first time called for "increasing the supply of high-quality housing", which is expected to promote the property market's transition from quantity to quality as a new driver for the sector's future development, experts said.

"The real estate market is entering a new phase, where the focus is shifting from rapid construction and volume to improving housing quality and meeting evolving buyer expectations," said Lu Wenxi, a market analyst with Centaline Shanghai.

Lu said consumers are now placing greater emphasis on location, property quality and affordability. Striking a balance between these factors has become essential for developers aiming to stay competitive in a changing market.

"As the market continues to evolve, developers who prioritize quality and tailor their products to meet these shifting demands are expected to find more opportunities," Lu added.

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"The policymakers' call for higher-quality homes is already having an impact on consumer expectations, and it will further have an influence on market transactions over the mid to long-term," said Xu Wei, a senior agent with Sinyi Realty in Shanghai.

Xu, a veteran in the realty brokerage business for 16 years, said finding high-quality homes within limited budgets has become a top priority for current homebuyers.

"Currently, the bestsellers in our region are quality school district homes, pre-owned apartments that are comparatively new and high-end residential properties with better quality," Xu added.

It is widely believed that more cities are expected to introduce standards and regulations to support the construction of high-quality residences, leading to a notable increase in the supply of "good housing".

wang_ying@chinadaily.com.cn