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    Economic Watch: China's property market recovery boosted by new "quality homes" standards

    Source: Xinhua

    Editor: huaxia

    2025-05-10 20:27:30

    SHANGHAI, May 10 (Xinhua) -- China's property market is showing renewed signs of recovery, with both new home sales and second-hand transactions increasing, fueled in part by a rising demand for high-quality housing spurred by newly introduced national standards for "quality homes."

    Released by China's Ministry of Housing and Urban-Rural Development, the upgraded national standards for residential projects, which came into effect on May 1, cover seven aspects that include living environment, building space, structure, indoor environment and building equipment.

    Among the most notable provisions are a minimum ceiling height of three meters for new residential buildings, mandatory elevators in structures with four or more floors, and enhanced sound insulation for walls and floors.

    Many industry insiders believe that meeting these new standards for a "quality home" is becoming a key selling point for properties that are up to standard, drawing increased interest from prospective buyers.

    MARKET REVIVAL

    During the recent five-day May Day holiday, which marked the first public holiday after the new standards were implemented, China's real estate market in many regions maintained the recovery momentum seen in the first quarter of 2025, with several first- and second-tier cities posting robust transaction figures.

    In Shanghai, one of China's most important regional real estate markets, total home sales during the holiday, including new and second-hand properties, rose 36 percent year on year. New home transactions were up 12 percent, while second-hand home sales surged by 44 percent.

    Similarly, south China metropolis Shenzhen recorded 826 new commercial housing subscriptions from May 1 to 5, with 317 units completing online contracts, up 23.89 percent year on year.

    According to the data released by the China Index Academy, during the May Day holiday, Beijing saw a total of 302 new residential properties signed online, covering 34,200 square meters, marking year-on-year increases of 114 percent and 107 percent, respectively.

    In Yantai, a coastal city in east China's Shandong Province, demand for high-quality homes was on full display during the May Day holiday. All 100 units of the first phase of a residential project named Boshiyayuan were sold on May 1, its launch day.

    "This project impressed us with its planning, layout and amenities," said a homebuyer surnamed Zheng. "Each unit has a private elevator, and the community features a basketball court, gym, swimming pool, yoga studio and communal dining hall. Even the aluminum front door with high-level insulation met our expectations."

    More and more homebuyers like Zheng are increasingly shifting their focus from simply "having a place to live" to seeking "livable quality," according to Ding Zuyu, president of the property research institution CRIC.

    Expectations for intelligent home systems, eco-friendly designs, thoughtful architecture and well-rounded facilities are driving a new wave of residential consumption.

    Guan Chong, general manager of the Shanghai branch of Jinmao, a Hong Kong-listed developer, said quality homes and well-designed communities offer homeowners a low-carbon, healthy and eco-friendly lifestyle, and such products have already been launched in major cities including Shanghai, Beijing and Nanjing -- and have received positive feedback from homebuyers.

    "Many of our homeowners have experienced technology-driven living and chose to purchase or upgrade to another similar property," the executive said. "This clearly demonstrates that quality homes will always have a place in the market and can effectively unleash demand for better housing."

    QUALITY-DRIVEN TRANSFORMATION

    On the supply side, changes are also underway. So far this year, industry insiders have observed a trend of "downsizing and upgrading" on the land supply side, which signals a significant increase in the availability of high-quality homes in the near future.

    Many cities have proactively adjusted their land supply structures by reducing overall volume and focusing on premium plots. A growing number of "small but refined" parcels are being released to better support high-quality residential development.

    In Hangzhou, capital city of east China's Zhejiang Province and a major regional property market, for example, about 90 percent of residential land parcels sold this year have a planned construction area of less than 90,000 square meters. These plots typically feature complete supporting infrastructure and moderate floor area ratios, making them well-suited for building quality housing.

    According to industry insiders, the new standards have the potential to drive further transformation in the real estate sector.

    "The new standards raise the ceiling height by 20 centimeters, an adjustment that takes into account the increasing average height of Chinese residents and significantly improves the space," said Zeng Yu, senior architect at the China Academy of Building Research.

    Zeng explained that the added height not only enhances the vertical dimension of indoor space, but also improves natural lighting and ventilation. This change, Zeng noted, boosts convenience and functional flexibility, while providing greater capacity for diverse interior design, technological upgrades and evolving lifestyle needs.

    Yu Tian, marketing general manager of Poly Developments and Holdings Group's Shanghai branch, believes the new national standards will have a significant impact on the development of the real estate sector.

    "These new standards encourage property developers to focus on product standards, research and development, and iteration, continuously increasing the use of new products, materials, technologies, next-generation information technologies and smart construction methods. This more segmented and diverse market will unlock the potential of demand for upgraded housing," Yu added.

    He Xinyu, general manager of Chengdu Ruihetai research institute of industrial and urban development, echoed this view. "In the long term, the new standards will guide the real estate sector to shift from its previous focus on high turnover to a focus on high quality, pointing the way forward for both real estate companies and their upstream and downstream partners," said He.

    The introduction of these new standards also opens a pathway for the renovation of older properties. By aligning with the new norms, outdated residential buildings can be transformed through improvements such as the installation of elevators, noise reduction measures, senior-friendly renovations and better amenities. This could lead to significant value increases for older communities.

    Chen Jie, a professor at Shanghai Jiao Tong University, said that, as a result, these initiatives are expected to boost the market value of second-hand homes, benefiting both homeowners and prospective buyers by improving the overall quality of the housing stock.

    For the first time, the phrase "quality homes" featured in the government work report unveiled during this year's "two sessions," the annual meetings of China's top legislature and top political advisory body.

    Guided by this trend, nearly 10 provincial-level regions, including Beijing, Shandong, Shanxi, Jiangsu, Guizhou and Sichuan, have focused on building high-quality housing systems by leveraging their regional characteristics. These efforts span the entire value chain, from standard-setting and land supply to construction techniques.

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