China outlines 2026 plan to stabilise property sector

An official from the Office of the Central Commission for Financial and Economic Affairs (CCFEA) said in a post-meeting briefing that the plan focuses on coordinated actions on both the supply and demand sides to better balance the property market.

Relevant authorities will strictly manage incremental housing supply while stepping up efforts to digest existing inventory, including encouraging the acquisition of unsold commercial housing for use as affordable housing. Meanwhile, more targeted policies will be rolled out to stimulate both essential first-home purchases and demand from households seeking to improve their living conditions.

The government will also facilitate a fundamental transformation of Chinese real estate developers. Support will be provided to help firms shift away from the traditional model that relies heavily on new-home sales, toward one that places greater emphasis on holding properties and providing high-quality, diversified residential and property management services.

To maintain stability during this transition, the existing state-coordinated "whitelist" mechanism -- designed to ensure the completion and delivery of stalled housing projects -- will be further leveraged and improved to better meet developers' reasonable financing needs.

The strategy also underscores a commitment to accelerating the formation of a new development pattern for the property sector. This includes reforming and improving the foundational systems governing real estate development, financing and sales, advancing reforms to the housing provident fund system, and promoting a gradual, orderly transition from the old model to the new.

The conference highlighted the underlying resilience and untapped potential of China's housing demand, the CCFEA official said. Official data show that the proportion of Chinese second-hand home transactions has increased to 45% this year, up from 28% in 2021.

Explaining the broader market context, the official said that since the beginning of 2025, China's total transaction volumes for both new and second-hand homes have remained largely stable, while the pace of housing price declines has continued to narrow. This reflects local governments' efforts to reduce property inventory and strictly control new supply, as well as real estate developers' rational responses to current market conditions.

Written by Tiffany Hou, houtianhui@mysteel.com

Edited by Vivian Yang, yangzhenqi@mysteel.com