SCIO briefing on China's economic performance in May 2025

Jinan Times APP:

Based on the data, how would you assess the real estate sector in May? What's your outlook for the real estate market moving forward? Thank you.

Fu Linghui:

In the fourth quarter of last year, local governments and relevant departments carried out central directives to stabilize the real estate market, introducing a range of city-specific policies that produced positive results. Since the beginning of this year, as stabilization measures have gained momentum, the market has continued to recover. In May, the real estate sector's overall performance remained stable. Year-on-year declines in home prices across 70 large and medium-sized cities continued to narrow, and inventories of commercial housing continued to fall.

In terms of transactions, real estate sales remained steady, supported by stabilizing policies. From January to May, the floor area and total sales of newly built commercial housing fell 2.9% and 3.8% year on year, respectively, remaining largely unchanged from the January-April period. The market was relatively active in some first- and second-tier cities, with both floor area and sales value increasing. On the pricing front, the year-on-year decline in prices for newly built commercial residential units continued to narrow. In May, among the 70 large and medium-sized cities, most saw the year-on-year decline in the sales prices of commercial residential buildings narrow. Specifically, the year-on-year decline in sales prices for new commercial housing narrowed by 0.4 percentage point in both first-tier and second-tier cities and 0.5 percentage point in third-tier cities. For secondhand homes, the year-on-year decrease narrowed by 0.5, 0.4 and 0.5 percentage point, respectively. Regarding commercial housing inventory, at the end of May, the total floor area of commercial housing for sale decreased by 7.15 million square meters compared with the end of April, marking the third consecutive month of decline.

Overall, policies to halt the market downturn and restore stability have continued to deliver results, and the real estate sector remained largely stable in May. However, it should also be noted that the real estate market is still adjusting, market confidence is still recovering, supply and demand dynamics need further improvement, and continued efforts are required to reinforce stabilization. Looking ahead, it is necessary to fully implement the decisions of the CPC Central Committee and the State Council and proactively respond to significant shifts in supply-demand dynamics. We must continue to promote urban renewal and the renovation of dilapidated housing, increase the supply of high-quality homes, better meet both basic and improved housing needs, and actively foster a new development model for the real estate sector. These actions will support the sector's stable and healthy growth. Thank you.

Zhou Jianshe:

Thank you, Mr. Fu. That concludes today's press conference. Goodbye, everyone.

Translated and edited by Chen Xinyan, Mi Xingang, Liu Sitong, Liu Ziying, Zhang Tingting, Xu Kailin, Yan Xiaoqing, Yan Bin, Wang Xingguang, Cui Can, Wang Yiming, Li Huiru, Zhang Junmian, Zhou Jing, Zhang Rui, Fan Junmei, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.