Better realty asset operations key to unlocking real estate value

High-quality development in China's real estate sector requires not only price stability and better residential housing, but also a strategic reassessment of commercial real estate.

As the sector shifts from construction-led expansion to the management of existing assets, buildings are becoming an important link between urban renewal and asset management. Advanced manufacturing and modern services are emerging as new pillars of economic growth, raising demands for the quality, functions and operating capacity of urban space. Policies to expand domestic demand, upgrade industry and renew cities are creating new opportunities for the building economy — a development model where commercial properties cluster high-value businesses, generate stable tax revenues and spur regional growth.

For decades, China's property sector mainly relied on new construction, stimulating extensive industrial chains across steel, cement, home appliances and furniture. Between 2018 and 2020, real estate value-added accounted for roughly 8.3 percent of China's GDP. However, amid deep market adjustments, that share fell below 6 percent in 2025.