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The Economist Cites ENHANCE Report: China's Property Market Adjustment May Last Until 2030

time：2025-12-30 source：The Economist

A recent analysis report on the development of China's real estate market, authored by the consulting team at ENHANCE International, has been cited in The Economist's latest in-depth feature titled "China’s property woes could last until 2030." In this comprehensive coverage focusing on the trajectory of China's housing sector, the ENHANCE International team offers professional and forward-looking insights into sales trends and price fluctuations across both new and second-hand housing markets.

Using four emerging first-tier cities as core research samples, the team conducted a granular decomposition and empirical analysis of the sales structure and price dynamics in these local markets. They explicitly identify a key characteristic of the current market: a significant structural shift in the proportion of new-home versus existing-home sales. Taking one such city as an example, new-home sales accounted for approximately half of total housing transactions in 2022. However, due to the profound supply-demand adjustments and sustained downward pressure in the industry over recent years, that share had fallen below 30% by 2024. Meanwhile, the sharp contraction in new-home transaction volume has directly led to a prolonged destocking cycle.
The ENHANCE International team believes that over the next decade, China's real estate market will enter a sustained period of adjustment and reform. The underlying logic of the industry will gradually be restructured, ultimately steering property values back toward their fundamental purpose—residential living.
To read the original article, please visit: https://www.economist.com/finance-and-economics/2025/12/30/chinas-property-woes-could-last-until-2030

 

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