Residential Real Estate in China - Market Research Report (2014-2029)
Beijing, China
Last Updated: May 2024
7210aRevenue
$1.3tr
Past 5-Year Growth
Profit
$XXX.Xbn
Employees
3m
Businesses
82,520
Wages
$XX.Xbn
Residential Real Estate in China industry analysis
Revenue for the Residential Real Estate industry in China is expected to decrease at a CAGR of 4.1% over the five years through 2024. This trend includes an expected decrease of 2.4% in the current year.
Since August 2020, the People's Bank of China and the China Banking and Insurance Regulatory Commission have proposed three debt indicators for real estate development and management companies through which the company's financial health can be rated. This new policy has exacerbated the company's debt pressure, making it unable to repay old debts by borrowing new debt. Some real estate companies faced a liquidity crisis.
In 2022, the city's lockdown and laying-off caused by COVID-19 epidemic led to the pressure of delaying the delivery of houses. The industry's newly constructed and completed areas decreased significantly throughout the year. In addition, the epidemic has impacted sales in the industry, and some sales offices have been forced to close temporarily. In 2022, the residential sales area decreased by 26.8%, and the residential sales decreased by 31.2%.
Industry revenue will recover at an annualized 3.3% over the five years through 2029. Over the next five years, the industry's drag on GDP will weaken, and industry growth will stabilize. However, high housing prices have become a major social problem in China. Under the measures on the principle that residential real estate is used for living, not speculation, the financial attributes of real estate will gradually weaken, and housing prices will tend to stabilize.
Trends and Insights
- Geographical location affects house prices. The socioeconomic factors of geographical location determine the positioning of residential real estate projects in the industry.
- Regular housing accounts for the largest proportion in the industry. The local government has specific preferential policies for residents who purchase regular housing.
- Housing prices in first-tier cities are high. First-tier cities have developed economies, high urbanization levels, dense populations, resulting in strong housing demand and high housing prices.
- Land reserves provide a competitive advantage. The ability to acquire land and property with good locations is a prerequisite for the development of real estate.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 4.1 % over the past five years, to reach an estimated $1.3tr in 2024.
Trends and Insights
The residential real estate industry faces a debt crisis
- High debt and leverage expose the industry to risks. In 2020, the government proposed requirements for corporate debt indicators, which constrained the aggressive expansion of enterprises and promoted them to reduce their asset-liability ratio.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
The industry will gradually end the downward trend
- Despite a significant decline in the Residential Real Estate industry in 2022, the industry remains a pillar industry in China. In 2023, the newly constructed area of real estate decreased by 20.9% year-on-year, which was narrower than that in 2022, and the completed area of real estate in this year increased by 15.8%.
Biggest companies in the Residential Real Estate in China
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Country Garden Holdings Company Limited | 47,730.6 | |
China Vanke Co., Ltd. | 41,101.3 | |
Poly Developments and Holdings Group Co., Ltd. | 23,865.3 |
To view the market share and analysis for all 8 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Regular housing, Luxury housing and Indemnificatory housing. Regular housing is the largest segment of the Residential Real Estate in China.
Trends and Insights
Regular housing accounts for the largest proportion in the industry
- Regular housing refers to dwellings built in accordance with local building standards, including multistory buildings and high-rise buildings. In 2024, regular housing is expected to contribute 68.5% of industry revenue.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Building Construction in China
- Building Completion & Interior Design in China
- Real Estate Development and Management in China
- Realty Management in China
- Real Estate Agents in China
- Commercial Real Estate in China
International industries
- Real Estate Sales & Brokerage in the US
- Property Management in the US
- Real Estate Appraisal in the US
- Real Estate Asset Management & Consulting in the US
- Real Estate Sales & Brokerage in Canada
Table of Contents
About this industry
Industry definition
Businesses in the Residential Real Estate industry in China are primarily develop, market, lease and sell residential real estate. The services this industry provides help people rent or buy homes. This industry is not involved in building construction or the provision of services related to home hotels, school dormitories, camp sites and apartment basements not for residence.
What's included in this industry?
Regular housingLuxury housingIndemnificatory housingRental housingCompanies
Country Garden Holdings Company LimitedChina Vanke Co., Ltd.Poly Developments and Holdings Group Co., Ltd.Purchase this report to view all 8 major companies in this industry.
Related Terms
CONSTRUCTION FLOOR SPACEMULTIFUNCTIONAL BUILDINGINDEMNIFICATORY HOUSINGPerformance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Geographical location affects house prices. The socioeconomic factors of geographical location determine the positioning of residential real estate projects in the industry.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Regular housing accounts for the largest proportion in the industry. The local government has specific preferential policies for residents who purchase regular housing.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Housing prices in first-tier cities are high. First-tier cities have developed economies, high urbanization levels, dense populations, resulting in strong housing demand and ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Land reserves provide a competitive advantage. The ability to acquire land and property with good locations is a prerequisite for the development of real estate.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Ensuring housing delivery has become a corporate goal. In the face of a liquidity crisis, companies maintain their brand image by ensuring housing delivery.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Country Garden Holdings Company Limited's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of China Vanke Co., Ltd.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Poly Developments and Holdings Group Co., Ltd.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 5 additional companies
Detailed analysis
- Description and key data for Country Garden Holdings Company Limited, and factors influencing its performance in the industry
- Description and key data for China Vanke Co., Ltd., and factors influencing its performance in the industry
- Description and key data for Poly Developments and Holdings Group Co., Ltd., and factors influencing its performance in the industry
- Description, key data and performance trends for 5 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Favorable policy on loan stabilized the industry’s development. The dynamic adjustment of interest rates on first time home purchases is conducive to enhancing industry activ...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Land prices squeeze profits. Due to fierce competition in the land market leading to high prices, the industry’s profitability is limited.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in China include:
- National Bureau of Statistics China
- General Administration of Customs
- People’s Bank of China
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Residential Real Estate industry in China in 2024?
The market size of the Residential Real Estate industry in China is $1.3tr in 2024.
How many businesses are there in the Residential Real Estate in China industry in 2024?
There are 82,520 businesses in the Residential Real Estate industry in China, which has declined at a CAGR of 1.4 % between 2019 and 2024.
Has the Residential Real Estate industry in China grown or declined over the past 5 years?
The market size of the Residential Real Estate industry in China has been declining at a CAGR of 4.1 % between 2019 and 2024.
What is the forecast growth of the Residential Real Estate industry in China over the next 5 years?
Over the next five years, the Residential Real Estate industry in China is expected to grow.
What are the biggest companies in the Residential Real Estate market in China?
The biggest companies operating in the Residential Real Estate market in China are Country Garden Holdings Company Limited, China Vanke Co., Ltd. and Poly Developments and Holdings Group Co., Ltd.
What does the Residential Real Estate in China include?
Regular housing and Luxury housing are part of the Residential Real Estate industry.
Which companies have the highest market share in the Residential Real Estate in China?
The company holding the most market share in China is Country Garden Holdings Company Limited.
How competitive is the Residential Real Estate industry in China?
The level of competition is high and increasing in the Residential Real Estate industry in China.
