China outlines plan to stabilize real estate sector in 2026

China outlines a plan to stabilize the real estate sector next year, according to Mysteel Global.

At the annual Central Economic Work Conference, which ended on December 11, a comprehensive strategy for stabilizing the housing market was outlined. It includes measures for specific cities to strictly control new supply while reducing existing supply, as well as accelerating the establishment of a new development model for the sector.

The relevant authorities will manage the growing supply of housing while stepping up efforts to distribute existing housing. For example, this involves encouraging the purchase of unsold commercial real estate for use as affordable housing.

The Chinese authorities also plan to introduce more targeted policies to stimulate both first-time home purchases and household demand for improved housing conditions.

Support will also be provided to help developers move away from the traditional model, which is largely based on the sale of new homes, to a focus on property maintenance and the provision of high-quality, diversified property management services. To support the stability of this transition, the current state mechanism of a “white list” of projects will be further utilized and expanded.

The strategy also emphasizes the commitment to accelerate the formation of a new development model for the real estate sector. In particular, this involves reforming and improving the systems that regulate its development, financing, sales, etc.

As a reminder, China is introducing export licenses for a wide range of steel products from 2026. Cast iron, semi-finished products, flat and long rolled products, as well as pipes and rail products will be subject to control.