Market Insights Financial Real Estate Residential Real Estate

Residential Real Estate Transactions - China

China

In China, the transaction value of the Residential Real Estate Transactions market market is forecasted to reach US$2.20tn in 2024.
This market segment is expected to demonstrate a compound annual growth rate (CAGR 2024-2029) of 1.67%, leading to a market volume of US$2.39tn by 2029.
China's residential real estate market is experiencing a surge in demand fueled by urbanization and population growth.

Key regions: Germany, Europe, Asia, United States, United Kingdom

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Analyst Opinion

The Residential Real Estate Transactions market in China has experienced significant growth in recent years.

Customer preferences: Chinese customers have shown a strong preference for investing in real estate, considering it a safe and reliable investment option. This preference is driven by several factors, such as limited investment options, a lack of trust in the stock market, and a cultural belief in the value of property ownership. Additionally, owning a home is seen as a symbol of social status and financial success in Chinese society.

Trends in the market: One key trend in the Chinese Residential Real Estate Transactions market is the increasing demand for urban properties. As China's urbanization continues, more people are moving to cities in search of better job opportunities and a higher standard of living. This has led to a surge in demand for residential properties in urban areas, driving up prices and transaction volumes. Another trend is the rise of online platforms for real estate transactions. Chinese consumers are increasingly using online platforms to search for and purchase properties, as these platforms offer convenience, transparency, and a wide range of options. This trend has also been fueled by the COVID-19 pandemic, which has accelerated the digitalization of various industries, including real estate.

Local special circumstances: China's unique regulatory environment has also shaped the Residential Real Estate Transactions market. The government has implemented various policies to control property prices and prevent speculative investment. These policies include restrictions on property purchases, higher down payment requirements, and limits on mortgage lending. These measures aim to ensure housing affordability and stability in the market.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the development of the Residential Real Estate Transactions market in China. The country's rapid economic growth and rising middle class have created a strong demand for housing. Additionally, low interest rates and easy access to credit have made it easier for individuals to invest in real estate. Furthermore, the government's focus on urbanization and infrastructure development has driven the growth of the market. The construction of new cities and the expansion of existing ones have created opportunities for real estate investment. Additionally, the government's efforts to promote sustainable development and improve living standards have also contributed to the demand for residential properties. In conclusion, the Residential Real Estate Transactions market in China has experienced significant growth due to customer preferences for real estate investment, the increasing demand for urban properties, the rise of online platforms, the unique regulatory environment, and underlying macroeconomic factors such as economic growth and government policies.

Methodology

Data coverage:

Figures are based on total and average revenue of residential real estate transactions (sales).

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.