China Luxury Residential Real Estate Market Size

China Luxury Residential Real Estate Market Analysis

The China Luxury Residential Real Estate Market size is estimated at USD 146.25 million in 2024, and is expected to reach USD 198.33 million by 2029, growing at a CAGR of 6.28% during the forecast period (2024-2029).

China’s luxury residential real estate market is fairly concentrated, with more than 100 luxury residential real estate developers providing luxary homes who are holding the major market share and having a hold on huge inventories. These developers were under a lot of pressure during the COVID-19 pandemic.

• In Tier 1 cities, prices moved upward strongly in Shenzhen and Hangzhou. They were slightly higher in Shanghai and stable in Beijing during the pandemic period.
• China's luxury residential real estate sector, which relates to a significant portion of the economy, is likely to see stabilization in 2022, after a turbulent 2021 during which many companies and market segments saw their slowest-ever growth or even declines. For instance, the luxury residential real estate market was the subject of 651 regulatory policies in 2021, the highest on record and 33% more than in 2020.
• According to China Real Estate Information Corp (CRIC), in the first half of 2022, the average selling price of luxury properties valued at more than USD 1.4 million (10 million RMB) increased 11% from a year earlier.
• Since the second half of 2021, China's luxury residential real estate market has shown indications of slowing down, with sales volume and home prices falling in a number of Chinese cities.
• The market's correction has led domestic financial institutions to upgrade their property-related financial services in order to keep up with shifting market dynamics. For example, the China Construction Bank has introduced JianrongJiayuan, an app that focuses on the long-term leasing sector.
• The census results from China’s National Bureau of Statistics released in May 2021 which is a challenging reality for the country – its population growth is slowing. This trend has shown up a great impact on luxury residential real estate in China.The luxury residential property prices have grown dramatically.
• Despite policy curbs, home prices grew at the fastest pace in eight months in April 2021, with new home prices up about +0.5% month on month and sales up by about a third year over year. Furthermore, a considerable part of all bank loans in China is property related. Out of these reasons, the development of the real estate sector is crucial for economic stability and the government is taking considerable efforts to control and stabilize the market.