China's property sector enters the era of stock housing

China's real estate industry has officially transitioned to a stock-phase development model, marking a pivotal structural shift in the country's urban housing landscape, senior housing officials confirmed on Friday.

Chen Shaowang, vice minister of housing and urban-rural development, outlined the key development blueprint for the 15th Five-Year Plan period at a press conference hosted by the State Council Information Office.

The upcoming five-year cycle will serve as a critical transformation window for China's three core urban development segments: urban and rural construction, residential and real estate markets, and the construction industry.

The ministry summarized the industry's structural overhaul under a three-tier framework: two strategic shifts, two market transformations, and three industrial upgrades.

The "two strategic shifts" apply to urban and rural development.

China's urbanization drive is moving from rapid quantitative expansion to steady, high-quality growth.

Meanwhile, municipal development is phasing out large-scale incremental construction and prioritizing the upgrading, optimization and efficiency improvement of existing urban stock assets.

For the residential and real estate sector, the "two market transformations" signal profound fundamental changes.

China's property supply-demand balance has undergone a historic reset, and the sector has fully entered a stock-dominated era.

Transaction data underscores the structural reversal: secondary home transactions accounted for 27% of China's property market in 2020, rose to 46% in 2025, and surpassed 50% in the first eight months of this year.

The crossing of the 50% threshold officially confirms the market's shift from incremental growth to stock circulation.

The construction industry is set to advance intelligent, green, and integrated transformation as its core development direction during the new planning cycle.

Officials also reviewed substantial progress achieved across housing and urban governance during the 14th Five-Year Plan period, highlighting five key improvements in high-quality development.

First, residential living standards have seen comprehensive enhancement.