China's property market sees major changes in supply and demand: official

BEIJING - China's property market has seen major changes in supply and demand and entered a new phase increasingly centered on existing housing stock, an official said Friday.

The share of second-hand home transactions in total housing transactions rose from 27 percent in 2020 to 46 percent in 2025, and 52 percent in the first eight months of this year, said Zhang Xuetao, an official with the Ministry of Housing and Urban-Rural Development, at a news conference.

A share exceeding 50 percent marks the property market's transition into the new phase, according to Zhang.

To adapt to these changes, China is accelerating efforts to foster a new development model for the real estate sector, Zhang said. The country will press ahead with reforms to three key systems governing property development, financing and sales to promote the sector's sound development.

In property development, each real estate project will operate through a dedicated project company that is an independent legal entity, while corporate headquarters will be barred from improperly diverting project funds, Zhang said.

In property financing, each project will have one lead bank or banking consortium to manage project funds and meet reasonable financing needs, with the bank and project company sharing benefits and risks, Zhang said.

In commercial housing sales, China will promote sales of completed homes to allow buyers to "get what they see" and reduce delivery risks, Zhang said, adding that the share of completed homes in total new-home sales by floor area has risen year by year in recent years.

Meanwhile, China will strengthen housing support for low-income urban families, new urban residents and young people, providing rental housing or homes for purchase as appropriate to meet basic housing needs, Zhang said.

Efforts to foster a new real estate development model have gathered pace this year. In August, authorities deepened reforms to the housing provident fund system and refined regulations on commercial housing sales and property financing as part of broader efforts to chart a new path for real estate development.

Data released earlier this week showed narrower year-on-year declines in home prices across major Chinese cities in August, pointing to further signs of stabilization as China continues city-specific policy adjustments, inventory reduction and urban renewal.

Meanwhile, overall property transaction volumes have improved, with second-hand home transactions by floor area rising 10.6 percent year-on-year in the first eight months, while the total floor area of unsold new commercial housing fell 1.1 percent year-on-year at the end of August, the sixth straight monthly decline.