China Residential Real Estate Market Size (2024 - 2029)

China Residential Real Estate Market Analysis

The China Residential Real Estate Market is expected to register a CAGR of less than 5% during the forecast period.

The Chinese residential real estate market is expected to register a CAGR greater than 5% during the forecast period (2023-2028).

• China's new home prices decreased at their fastest pace in over seven years in October 2022, weighed down by COVID-19 curbs and industry-wide problems, reflecting a deepening contraction that prompted authorities to ramp up support for the sector. New home prices slumped 1.6% year-on-year after a 1.5% fall in September 2022. That was the biggest annual drop since August 2015 and the sixth month of contraction. Home prices in 100 cities fell for the sixth month in December 2022, declining 0.08% from a month earlier after falling 0.06% in November 2022.
• Chinese authorities are making their biggest effort yet to end a crisis in the country's vast real estate sector that has weighed heavily on the economy in 2022. Key measures include allowing banks to extend maturing loans to developers, supporting property sales by reducing the size of down payments and cutting mortgage rates, boosting other funding channels such as bond issues, and ensuring the delivery of pre-sold homes to buyers. In August 2020, the government began trying to rein in excessive borrowing by developers to curb runaway house prices. The problems escalated in 2021 when Evergrande - the nation's second-largest developer - defaulted on its debt. As the property sector crashed, several major companies sought protection from their creditors. The cash crunch meant that work on many pre-sold housing projects across the country was delayed or suspended.
• The crisis entered a new phase in the summer of 2022 when angry home buyers refused to pay mortgages on unfinished homes, roiling financial markets and sparking fears of contagion. Since then, authorities have tried to defuse the crisis by urging banks to increase loan support for developers so that they can complete projects. Regulators have also cut interest rates in a bid to restore buyer confidence. However, the property slump persisted as buyers backed away from the market because of the weak economy and strict Covid curbs.
• In October 2022, sales by the 100 biggest real estate developers contracted 26.5% from a year ago. From January to November 2022, their sales have fallen by 43%. However, the property sector has also been boosted slightly after Beijing abruptly dropped its strict zero-Covid policy in early December, which could lure consumers back to the market.

China Residential Real Estate Industry Segmentation

Residential real estate is an area developed for people to live in and cannot be used for commercial or industrial purposes. It emerges when land sanctioned for residential use is purchased by someone, which becomes real property and encompasses a large variety of potential dwellings, from houses to houseboats and from neighborhood types ranging from the poorest slum to the wealthiest suburban subdivision. The report focuses on the market dynamics, technological trends, insights, and government initiatives in the residential real estate sector. Furthermore, it analyzes the key players present in the market and the competitive landscape in the Chinese residential real estate market. China's residential real estate market is segmented by type ( villas and landed houses, apartments, and condominiums) and by city (Shenzhen, Beijing, Shanghai, Hangzhou, Guangzhou, and other cities). The report offers the market sizes and forecasts for the China residential real estate market in value (USD) for all the above segments.