China Luxury Residential Real Estate Market Size (2024 - 2029)

The China luxury residential real estate market is projected to experience growth over the forecast period, with a notable concentration of market share held by over 100 developers. Despite challenges such as the COVID-19 pandemic and regulatory pressures, the market has shown signs of stabilization and price increases in key cities. The sector's significance to the economy has prompted domestic financial institutions to adapt their services to align with evolving market dynamics. Additionally, demographic trends, such as slowing population growth, have impacted the market, highlighting the importance of real estate development for economic stability.

Market Size of China Luxury Residential Real Estate Industry

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China Luxury Residential Real Estate Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 146.25 Million
Market Size (2029) USD 198.33 Million
CAGR (2024 - 2029) 6.28 %
Market Concentration Medium

Major Players

China Luxury Residential Real Estate Market Major Players

*Disclaimer: Major Players sorted in no particular order

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China Luxury Residential Real Estate Market Analysis

The China Luxury Residential Real Estate Market size is estimated at USD 146.25 million in 2024, and is expected to reach USD 198.33 million by 2029, growing at a CAGR of 6.28% during the forecast period (2024-2029).

China’s luxury residential real estate market is fairly concentrated, with more than 100 luxury residential real estate developers providing luxary homes who are holding the major market share and having a hold on huge inventories. These developers were under a lot of pressure during the COVID-19 pandemic.

  • In Tier 1 cities, prices moved upward strongly in Shenzhen and Hangzhou. They were slightly higher in Shanghai and stable in Beijing during the pandemic period.
  • China's luxury residential real estate sector, which relates to a significant portion of the economy, is likely to see stabilization in 2022, after a turbulent 2021 during which many companies and market segments saw their slowest-ever growth or even declines. For instance, the luxury residential real estate market was the subject of 651 regulatory policies in 2021, the highest on record and 33% more than in 2020.
  • According to China Real Estate Information Corp (CRIC), in the first half of 2022, the average selling price of luxury properties valued at more than USD 1.4 million (10 million RMB) increased 11% from a year earlier.
  • Since the second half of 2021, China's luxury residential real estate market has shown indications of slowing down, with sales volume and home prices falling in a number of Chinese cities.
  • The market's correction has led domestic financial institutions to upgrade their property-related financial services in order to keep up with shifting market dynamics. For example, the China Construction Bank has introduced JianrongJiayuan, an app that focuses on the long-term leasing sector.
  • The census results from China’s National Bureau of Statistics released in May 2021 which is a challenging reality for the country – its population growth is slowing. This trend has shown up a great impact on luxury residential real estate in China.The luxury residential property prices have grown dramatically.
  • Despite policy curbs, home prices grew at the fastest pace in eight months in April 2021, with new home prices up about +0.5% month on month and sales up by about a third year over year. Furthermore, a considerable part of all bank loans in China is property related. Out of these reasons, the development of the real estate sector is crucial for economic stability and the government is taking considerable efforts to control and stabilize the market.

China Luxury Residential Real Estate Industry Segmentation

Luxury Residential real estate refers to properties that are exclusively designed for human occupation, which provides charmed and resort life with high end amenities. Luxury residential real estate is something which has wider concept than simple homes, the homes equipped with all the luxarious items like home decor, security, home plans, high end kitchens, Surreal view from the property, smart home features and lavish property amenities are called as luxury homes or luxury residential real estate. The China luxury residential real estate market is segmented by type (villas and landed houses, apartments and condominiums) and by cities( Beijing, Wuhan, Shanghai, Shenzhen, Guangzhou, and other cities) . The report offers market size and forecasts in value (USD) for all the above segments.

By Type
Villas and Landed Houses
Apartments and Condominiums
By Cities
Beijing
Wuhan
Shanghai
Shenzhen
Guangzhou
Other Cities
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China Luxury Residential Real Estate Market Size Summary

The China luxury residential real estate market is characterized by a significant concentration of developers, with over a hundred key players holding substantial market shares and inventories. This sector, integral to China's economy, experienced pressures during the COVID-19 pandemic, leading to a period of stabilization in 2022 after a challenging 2021 marked by regulatory scrutiny and market corrections. Despite these challenges, the demand for luxury housing remains robust, driven by urbanization, improved job market conditions, and rising income levels. Tier 1 cities like Shenzhen and Hangzhou have seen notable price increases, while Hong Kong continues to lead in average price per square foot for prime luxury properties. The market's dynamics are further influenced by mortgage rate adjustments and financial institutions' efforts to adapt to changing conditions.

The competitive landscape of China's luxury residential real estate market is semi-consolidated, with both international and local players such as Evergrande Real Estate Group Limited, Christie's International Real Estate, and China Vanke Co. actively participating. The market is witnessing increased foreign capital inflow, prompting domestic developers to engage in joint ventures to enhance their financial and managerial capabilities. Recent developments include significant credit extensions by China's largest banks to property developers, signaling a shift from previous tight controls and aiming to stabilize the sector. These strategic moves, alongside government efforts to manage market fluctuations, underscore the sector's importance for economic stability and growth.

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China Luxury Residential Real Estate Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Dynamics

      1. 1.2.1 Market Drivers

        1. 1.2.1.1 Higher incomes support

        2. 1.2.1.2 Massive industry change

      2. 1.2.2 Market Restraints

        1. 1.2.2.1 High imbalance in population versus real estate index

      3. 1.2.3 Market Opportunities

        1. 1.2.3.1 Increase in foreign demand and foreign investments

    3. 1.3 Value Chain / Supply Chain Analysis

    4. 1.4 Industry Policies and Regulations

    5. 1.5 Technological Developments in the Sector

    6. 1.6 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.6.1 Threat of New Entrants

      2. 1.6.2 Bargaining Power of Buyers/Consumers

      3. 1.6.3 Bargaining Power of Suppliers

      4. 1.6.4 Threat of Substitute Products

      5. 1.6.5 Intensity of Competitive Rivalry

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Villas and Landed Houses

      2. 2.1.2 Apartments and Condominiums

    2. 2.2 By Cities

      1. 2.2.1 Beijing

      2. 2.2.2 Wuhan

      3. 2.2.3 Shanghai

      4. 2.2.4 Shenzhen

      5. 2.2.5 Guangzhou

      6. 2.2.6 Other Cities

China Luxury Residential Real Estate Market Size FAQs

The China Luxury Residential Real Estate Market size is expected to reach USD 146.25 million in 2024 and grow at a CAGR of 6.28% to reach USD 198.33 million by 2029.

In 2024, the China Luxury Residential Real Estate Market size is expected to reach USD 146.25 million.

China Luxury Residential Real Estate Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)