A Politburo meeting of the Communist Party of China held on April 28 analyzed the current economic situation and outlined priorities for economic work. The meeting emphasized the need to effectively prevent and mitigate risks in key sectors, striving to stabilize the real estate market and steadily advance urban renewal initiatives.
Compared to the "focus on stabilizing" wording used in last December’s Central Economic Work Conference and this year’s Government Work Report in March, the shift to "striving to stabilize" carries notable implications. In addition, the meeting’s emphasis on urban renewal and the correct view of political performance also offers significant guidance for the property sector.
Yan Yuejin, Vice President of the Shanghai E-House Real Estate Research Institute, noted that the meeting’s continued inclusion of real estate within the framework of "actively and prudently preventing and resolving risks in key areas" indicates that the central government’s fundamental stance remains unchanged—prioritizing the avoidance of systemic risks. This suggests that short-term policy direction will maintain stability while optimizing existing measures.
Yan pointed out that stabilizing the property market is critical to overall macroeconomic performance. Placing real estate within the risk prevention category helps accurately position the market and guard against sharp fluctuations or downturns, thereby supporting steady economic growth.
He further observed that the term "striving to stabilize" reflects practical considerations. While some cities have seen improved activity in the secondary housing market, new home sales remain weak, and indicators such as corporate investment and new construction starts continue to face pressure. This not only affects the real estate sector itself but also negatively impacts related industrial chains and local government revenues.
Thus, "striving to stabilize" acknowledges the effectiveness of earlier policies while indicating that continued efforts are needed to improve conditions in the new home market and support corporate investment and financing.
Li Yujia, Chief Researcher at the Guangdong Housing Policy Research Center, suggested that "focus on stabilizing" implied a clear target, such as earlier goals like "reducing inventory" or "halting declines," with policy resources concentrated in a specific direction. In contrast, "striving to stabilize" emphasizes attitude and process, with relatively diluted specific targets. It signals a departure from the old model of stimulus and over-reliance on real estate, shifting toward demand-side support, market stabilization, and active exploration of new development models to achieve a smooth transition.
Li cited three reasons for the change in wording: first, despite frequent policy adjustments, new home sales continue to decline year-on-year, indicating persistent pressure on market stability; second, structural issues such as constrained home-swapping demand and low transaction volumes remain prominent; and third, new frameworks and logic are needed to establish a stable real estate market.
The meeting also stressed the need to "steadily advance urban renewal." Yan Yuejin commented that "steadily advance" underscores the long-term nature and quality orientation of urban renewal efforts. As a systematic project involving urban planning, infrastructure development, and residential living conditions, urban renewal requires practical outcomes, avoiding formalism, and genuinely linking urban quality improvements with domestic demand stimulation.
Li Yujia added that combining market stabilization with urban renewal sends a clear signal. In the long run, the stability of the real estate market depends on the progress and effectiveness of urban renewal. By addressing deficiencies, enhancing the utility of old residential areas, and improving the efficiency and transaction activity of existing housing, urban renewal can strengthen price foundations and promote home replacement—key pathways to market stability. Moreover, it can unlock inefficient land in central urban areas, driving effective investment and sales, while repurposing vacant or underused properties for new consumption, industries, and business models, thereby boosting employment and housing consumption.
Looking ahead, experts suggest that future policies will likely continue to focus on stabilizing market transactions and preventing risks, while leveraging high-quality urban renewal to support domestic demand and urban quality.
Yan also highlighted the meeting’s emphasis on "thoroughly promoting education on establishing and practicing a correct view of political performance" and reiterated the guidance of "promoting high-quality development." This has important implications for the real estate sector, as some local governments previously pursued short-sighted behaviors—overemphasizing short-term growth and fiscal revenue while neglecting long-term market health.
He indicated that the current policy direction, guided by a correct view of political performance, will lead to greater emphasis on genuine market feedback in policy formulation, inventory reduction, and urban renewal from the second quarter onward. Local governments will need to consider supply-demand dynamics and residents’ income levels to ensure effective policies that genuinely support market recovery.
According to data from the National Bureau of Statistics, in the first three months of the year, sales area of new commercial homes nationwide fell by 10.4% year-on-year to 190 million square meters, while sales value dropped by 16.7% to 1.7 trillion yuan. During the same period, real estate development investment declined by 11.2% to 1.8 trillion yuan.