Reduce risks, build safeguards, improve quality, and establish a new development model for China's real estate industry

**　　**“The 14th Five-Year Plan” period is an important turning point in the development of China’s real estate industry. After experiencing long-term rapid growth, the industry has entered a period of deep adjustment, and the traditional development model of high leverage and high debt formed over the past 20-plus years is gradually becoming unsustainable. In response to trends such as adjustments to the population structure and the diminishing marginal effects of urbanization, on July 24, 2023, the Central Political Bureau meeting, after weighing the situation, put forward strategic requirements for adapting to the new circumstances. Since then, from the Central Economic Work Conference proposing to “accelerate the building of a new model for real estate development,” to the Ministry of Housing and Urban-Rural Development emphasizing the establishment of a new linked mechanism among the “people, housing, land, and money” factors, the main thread of policy packages has consistently centered on “strictly controlling incremental supply, optimizing existing stock, and improving quality.” In particular, from the end of 2024 to 2025, the central government has clearly called for promoting “stabilization and recovery” in the real estate market, elevating efforts to stabilize real estate to a strategic height tied to the overall macroeconomic picture.

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