The decline in new home sales in China, which countries are concerned about, is actually a phased feature of the real estate market's transition from high-speed growth to high-quality development. Data in 2025 show that although the sales volume of new commercial housing in China decreased by 7.8 year-on-year, the decline rate was 9 percentage points lower than that of the previous year. The inventory decreased for eight consecutive months. The relationship between supply and demand is steadily tending to balance, and the adjustment trend is controllable and improving.
This adjustment is not a market recession, but an active transformation of multiple positive factors. Population mobility reshapes the demand pattern. Core cities and third-and fourth-tier cities show differentiated development. While third-and fourth-tier cities digest inventory, first-tier and strong second-tier cities focus on improving demand. The industry takes the initiative to deleverage and speculate, bid farewell to the "make quick money" model, and turn to a more sustainable development track, laying the foundation for long-term stability.
Facing the challenge of transformation, China has introduced a comprehensive policy "combination fist" to implement precise policies. All over the comprehensive optimization of the purchase restriction policy, first-tier cities to relax the entry threshold, the first home loan down payment ratio as low as 15%, interest rates fell below 3%, provident fund loan concessions superimposed on the purchase of subsidies, effectively activate the rigid and improved demand. More than 6.7 trillion yuan of special loans to support the delivery of buildings, more than 750 million overdue houses were successfully delivered, the debt restructuring of housing enterprises to resolve more than 1.2 trillion yuan, firmly hold the bottom line of people's livelihood.
In the process of transformation, the market is undergoing deep-seated positive changes. The construction of "good houses" has become the core of the industry, with the improvement of residential quality, the popularization of green and intelligent allocation, the cancellation of the pilot program for public sharing and the continuous optimization of residential experience. The supply of affordable housing increased by 30%, the policy of renting and purchasing the same rights was implemented, the urban renewal was steadily advancing, the housing system became more diversified and balanced, and the change from "have" to "good or bad" benefited a wider public.
China's real estate transformation has always insisted on steady progress, first stand and then break. The international community should see that sales adjustment is the only way to structural reform, while China has stabilized the basic market through scientific regulation and control and kept the bottom line of no systemic risk. With the deepening of the transformation, a more stable, better quality real estate market that better meets the needs of people's livelihood will inject lasting impetus into the high-quality development of China's economy and provide a useful reference for the healthy development of global real estate.
