At the 2026 Real Estate Brokerage Annual Conference held on July 23rd, KE Holdings Inc. (BEKE) Party Secretary and Executive President, Zuo Donghua, delivered a speech titled "Industry Value in a Mature Market." He proposed that the real estate brokerage industry is currently experiencing a "triple inflection point" involving the market, technology, and consumer demand. The market is shifting from new construction to existing homes, technology is evolving from "Internet+" to "AI+", and consumer needs are moving from focusing on asset appreciation to prioritizing real-life quality.

Zuo Donghua stated that under these three major shifts, the industry must transition from merely facilitating a single transaction to serving an entire residential living journey. Consequently, agents must evolve from "information transmitters" to "people worthy of trust."

Second-Hand Transaction Share Exceeds 50% for the First Time; Market No Longer Moves in Tandem

"The market has moved from an era of new construction growth to a stock era dominated by second-hand home circulation. We refer to this as a mature market," Zuo said. He explained that a mature market is first reflected in a change in transaction structure. Between 2008 and 2009, second-hand home transactions in first-tier cities surpassed new home sales for the first time. Around 2015, new first-tier cities successively entered a phase dominated by second-hand homes. By the first half of 2026, the proportion of second-hand home transactions nationwide exceeded 50% for the first time, indicating a structural entry into the stock age for China's real estate market.

The stock market is no longer characterized by simple widespread price increases or decreases, but by more pronounced divergence. Monitoring by the Beike Research Institute of 321 actively trading communities in Beijing showed that from February to June 2026, 185 communities saw price increases, while 136 were still adjusting, with the overall median price change being 1.6%. Even within the same district or commercial area, significant differences can appear between different communities or property layouts.

In Zuo's view, when evaluating the market today, one cannot simply ask whether overall prices are rising or falling. It is more important to see where transactions are occurring and what type of living demand supports them. As the market matures, housing is returning to a "human" scale: shifting from an overemphasis on asset attributes back to residential attributes, and from pursuing exchange value to returning to use value.

This change is also reflected in consumer language. Customer interviews conducted by Beike in the Chengdu-Chongqing region found that "life language" related to marriage, childbirth, children's education, retirement, and job migration is replacing "asset language" about potential price increases, becoming a more primary consideration in home-buying decisions. Zuo believes transaction volume should no longer be simply viewed as a "thermometer" of market sentiment, but rather as an indicator of the pace at which consumers' life events occur. "Behind every transaction is a reorganization of a life relationship."

The Stronger AI Gets, the More Critical Human Judgment and Responsibility Become in Brokerage

Following the internet's role in making property information transparent and improving transaction efficiency, AI is now bringing a new wave of technological change. Zuo gave an example: previously, an agent might spend hours screening ten properties for a client, planning viewing routes, and summarizing pros and cons. Now, an AI agent can complete a preliminary plan in minutes. As standardized tasks are gradually taken over by AI, service models that rely solely on information transmission will face transformation.

"When these tasks are handled by machines, what irreplaceable value do we have left?" Zuo argued that while AI excels at data, computation, and standardized delivery, it cannot replace human judgment and responsibility in complex decisions. It can provide property valuations and analyze pros and cons, but it cannot bear transaction risks for the client or effectively handle the anxiety and uncertainty clients face during major decisions. "It's not that AI makes people unimportant; on the contrary, AI highlights the unprecedented importance of what only humans can do," Zuo stated. He believes that while AI will continue to develop rapidly over the next decade, there is no need for anxiety. The more technology advances, the clearer it becomes to recognize the irreplaceable value of people.

From 'Helping to Buy and Sell' to 'Helping to Live Well'

These three inflection points ultimately point towards a reconstruction of the industry's value. Zuo believes the industry previously operated largely in a "world of properties," focusing on circulation efficiency and asset value. A mature market, however, requires the industry to enter a "world of people," concentrating on real living experiences and returning to a consumer-centric approach.

On the seller's side, brokerage services must help a home that has hosted years of life complete its "commodification transformation" by identifying its true selling points. On the buyer's side, it requires completing a "life transformation," helping consumers determine if a property truly suits their family structure, life stage, and lifestyle. The industry's value lies in creating greater certainty throughout the transaction, contract signing, and post-signing services, allowing sellers to sell with peace of mind and buyers to purchase with confidence.

Outlining the new value for the real estate brokerage industry, he also sketched a six-stage value chain, moving from "helping to buy and sell" to "helping to live well." This includes: explaining the market and understanding needs before the transaction; ensuring information transparency and authenticity and aiding judgment during the transaction; providing safety and risk assurance after the transaction; and offering continuous services during the move-in, settlement, and subsequent relocation phases. "From a single transaction to a lifelong companionship in living."

"In the past, the industry focused more on how much business was done. In the future, it must focus on how many people it truly adds value for, and whether it is worthy of long-term trust," Zuo concluded.