China’s Property Market Enters an Era of Existing Housing Stock

BEIJING, Sept. 18, 2026— China’s property market has entered a new stage increasingly defined by existing housing stock and resale transactions, marking a major shift from the rapid expansion model that characterized the sector for decades.

At a State Council Information Office press conference on Friday, Zhang Xuetao, head of the Department of Real Estate Market Regulation under the Ministry of Housing and Urban-Rural Development, said China’s property market is undergoing two major changes: a significant shift in supply and demand, and a transition into an era dominated by existing housing stock.

According to data presented at the briefing, the share of second-hand home transactions increased from 27% in 2020 to 46% in 2025. During the first eight months of 2026, the figure reached 52%, exceeding the 50% threshold that housing authorities use to characterize the market as having entered the existing-stock era.

From New Construction to Existing Housing

The change reflects a broader transformation in China’s housing market. During the country's rapid urbanization period, developers focused heavily on building and selling new residential projects. As urbanization slows and housing supply expands, however, demand is increasingly shifting toward improving existing homes, buying second-hand properties and upgrading living conditions.

China’s National Bureau of Statistics said that nationwide sales of newly built commercial housing totaled about 499.88 million square meters during the first eight months of 2026, down 12.1% year on year. At the same time, second-hand home transactions have remained an increasingly important part of the market.

The transition does not necessarily mean that new housing will disappear. Instead, it suggests that developers, local governments and housing-related businesses will need to adapt to a market in which the quality, location and service value of existing properties become increasingly important.

Existing-Home Sales Become a Major Policy Direction

Another important development is the push toward existing-home sales.

Zhang said existing-home sales have become an inevitable direction for the property market. Under the model, buyers can inspect completed homes before paying, creating a “what you see is what you get” purchasing experience and reducing the risks associated with unfinished projects.

Housing authorities have said new projects should prioritize existing-home sales while projects that continue to use the presale model will face stronger supervision of presale funds to better protect homebuyers.

The policy shift addresses one of the major risks exposed during the property downturn: buyers purchasing unfinished homes can face uncertainty if developers experience financial difficulties.

Housing Demand Is Also Changing

The transition into an existing-stock market is accompanied by changes in what homebuyers are looking for.

The National Bureau of Statistics said housing demand is increasingly focused not simply on whether people can obtain a home, but on whether a home is suitable for their needs and offers better living quality. Demand for smart, green and age-friendly housing is also increasing.

This means competition in the property sector may increasingly involve renovation, property management, community services, energy efficiency and location rather than simply the volume of new construction.

A Long-Term Structural Adjustment

China’s property market remains under pressure. Reuters reported that new home prices declined again in August, while sales, investment and new construction starts also remained weak during the first eight months of the year. At the same time, price declines in some major cities have shown signs of narrowing.

Against this backdrop, the move toward an existing-stock market represents more than a temporary adjustment in sales figures. It points to a broader restructuring of how housing is developed, sold and managed.

For developers, the focus may increasingly shift from expanding construction volume to improving project quality and controlling financial risks. For homebuyers, completed properties and the condition of existing communities could become increasingly important factors in purchasing decisions.

As China moves deeper into this new phase, the property sector is likely to place greater emphasis on quality, safety, services and sustainable development rather than the rapid expansion of housing supply that defined the previous era.