Hopes for housing turnaround in the air

"Such expressions as a continuation of previous guidance for the sector showed the central government's resolve to replace the previous model of high leverage, high debt and high turnover with a more sustainable and higher-quality solution," Xie said.

The overall financing environment for homebuilders will be further regulated to reduce corporate debt and mitigate financial risks. At the same time, relevant policies will ensure that the household leverage ratio is kept at a sustainable level. Real estate enterprises will actively expand financing channels, optimize the debt structure and improve debt security, experts said.

A certain amount of demand in the housing market tends to remain irrespective of circumstances. Combined with demand from first-time homebuyers, the two aspects should help raise the quality of residential housing to greener, healthier and better levels. As a result, China's residential housing market will begin to pay increasing attention to user needs in the long run.

The government will also help maintain steady development of the market. With appropriate policy support, the market is expected to develop in a more sustainable manner, analysts said.

"The government has made clear that it will accelerate the development of the long-term rental housing market, which will encourage real estate enterprises to invest more in asset-light projects like long-term rental apartments," said Brodie with Cushman& Wakefield.

In addition, as some urban clusters integrate regional resources, strong second- and third-tier cities in the Yangtze River Delta region, the Guangdong-Hong Kong-Macao Greater Bay Area and the Beijing-Tianjin-Hebei region may see more residential projects, which means further business opportunities will likely emerge for builders in these regions, he said.

Furthermore, Chinese people's health awareness will create opportunities for projects featuring green buildings, healthy buildings, smart buildings and professional facility management, said Xie with CBRE China.

The nation's goal to achieve carbon neutrality by 2060 and rising environmental, social and governance requirements for listed enterprises will promote companies in the real estate sector to strike a balance among economic efficiency, environmental protection and social benefits, Xie said.