The residential property market in China is currently experiencing a positive transition that somewhat mirrors its own economic trend. The country's property market, which is often considered to be an important economic indicator, is currently experiencing some downward movement, but analysts are confident that the positive changes in the sector will eventually lift it up in the coming quarters.
Industry experts have pointed out that China's residential property sector has slowly been transitioning from focusing on high growth to focusing on better quality.
The gradual change has been seen by some as a massive game-changer for the industry as it does offer long-term positive implications for the economy as a whole.
According to the real estate agency JLL China, developers around the country are now shifting their focus from rapid growth to a more sustainable approach for their respective projects.
Achieving that goal will however be a big challenge for most developers given the massive hurdles that must be overcome. Some of these hurdles include increase government regulations and more cautious investors for new developments.
Despite the hurdles, the industry is apparently still very excited about the outlook for the sector as a whole. As more and more developers adopt new technological advances in urbanization and environment-friendly construction, China will soon be seeing a spike in smarter and greener buildings.
The shift is expected to result in a property development revolution within the country, which should help quell short term concerns.
The transition also falls in line with the central government's push for developers to build homes for actual living and not for speculative investments.
The president of the China Real Estate Data Academy, Chen Sheng, mentioned that all of the major players in the industry are now at a turning point in redefining the actual function of real estate in the country.
Chen pointed out that the onslaught of rapid residential property development for the purpose of speculative investment and as a quick economic stimulus tool is now over. Developers are aware of this and most are now looking into reaching a state of better quality development for the sustainability of their business.
To aid developers in their transition, China's government has implemented a number of measures to bolster better quality projects. These measures include well thought out tax reforms, financial opening-up, and regional development promotion for innovation.
Recently enacted policies have done well to make ensure that residential property prices remain stable. Residents now have a more decent chance to purchase new properties that are within their means. China's financial opening-up has also done wonders for the sector, with foreign capital now playing a more active role in prime commercial real estate in major first and second-tier cities.
