China’s property market has entered its sixth year of adjustment, continuing to weigh on the world’s second-biggest economy while affecting millions of households and consumer confidence. In a recent Reuters report on China’s ongoing property crisis, Sam Radwan, CEO of ENHANCE International, shared his views on the structural challenges facing the property sector and its longer-term outlook.

Radwan emphasized the systemic nature of the current property market challenges, stating: “The problem is systemic, and there’s not much you can do about it.” During the years of rapid property expansion, housing served not only as a place to live but also as an investment for more than a third of the population, contributing to an imbalance between housing supply and household demand.

The property market continues to face significant challenges, including millions of partially built properties, falling land sales, and accelerating declines in property sales and construction. In smaller inland cities, second-hand home prices are down almost a quarter from 2020 levels, putting further pressure on consumption. Meanwhile, the recovery in new-home prices in major cities such as Beijing and Shanghai has stalled.

Looking ahead, Radwan estimates that it will take approximately 18 months to clear existing home inventory. He believes home prices may need to fall a further 40% from 2025 levels to reach an equilibrium, a process that could take another decade.

Radwan also highlighted the uncertainty surrounding the market’s bottom: “They know well enough that they're nowhere near the bottom but they can't see the bottom.” His assessment reflects the prolonged and structural nature of the adjustment currently underway in China’s property market.