Pursuit of 'quality homes' injects new impetus into China's property market

BEIJING - Stepping into a model apartment, a homebuyer surnamed Liu was immediately struck by the bright, open layout. Right at the entrance, a small garden seamlessly flowed into the dining area and kitchen, creating a single airy space bathed in natural light.

The park-inspired residential project in Chengdu, Southwest China's Sichuan province, features an adventure playground, camping lawns and wooded trails. "I value the outdoor facilities here for both kids and their grandparents," said Liu.

More and more homebuyers like Liu are increasingly shifting their focus from simply "having a place to live" to seeking "livable quality," which is injecting new impetus into China's property market.

Over the past few years, China's real estate market has seen a significant shift in the supply-demand relationship as the country's urbanization has shifted from rapid growth to stable development, said Li Yujia, chief researcher at the Guangdong Housing Policy Research Center.

According to a circular released by the Ministry of Housing and Urban-Rural Development on the development of the construction sector during the 14th Five-Year Plan period (2021-2025), people's housing needs are changing from a mere space to live to a home of high quality, which provides the construction industry with unprecedented opportunities for transformation.

Industry insiders believe that the property sector is transitioning from rapid, debt-fueled expansion to quality-driven development.

In March, the phrase "quality homes" was featured in the government work report for the first time.

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, 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 homes.

On May 1, new national standards for residential projects took effect, putting the improvement of housing quality in China on a faster track. The updated guidelines set higher requirements for factors such as ceiling height, elevator access and sound insulation, providing a clearer framework for building quality homes.

"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, as well as allows for thicker floor slabs, soundproof panels, and full-home smart systems.

Yu Tian, marketing general manager of Poly Developments and Holdings Group's Shanghai branch, believes the new national standards will 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," said Yu.

At a residential project in Shanghai, the adoption of ultra-low energy technologies, including integrated thermal insulation, triple-glazed windows and rooftop solar panels, has cut energy consumption by 30 percent.

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.

"The 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," said Chen Jie, a professor at Shanghai Jiao Tong University.

Urban renewal can unlock pent-up demand for housing upgrades, said Liu Lin, a researcher at the Chinese Academy of Macroeconomic Research, adding that building safe, comfortable, green and smart homes will bolster investment and consumption.

"China's property market will remain underpinned by solid demand in the medium to long term," said Liu.