I. China's Real Estate Market Recovery: New "Quality Housing" Standards Drive Industry Upgrade

In 2025, China's real estate market shows positive recovery signs, closely linked to the implementation of new "quality housing" standards. The national standard "Residential Project Specification" effective since May 1, 2025, defines "good houses" from four dimensions: safety, comfort, eco-friendliness, and intelligence. It raises the minimum standard for residential construction, propelling the market from a focus on "availability" to an emphasis on "quality," and injecting new vitality into the recovery.

II. New Standards Boost New Housing Quality and Demand Release

1. Quality Upgrades: The new rules enhance spatial comfort by requiring new residences to have a floor height of no less than 3 meters, a bedroom clear height of 2.6 meters, and specified kitchen and bathroom areas. The requirement for elevators in residential buildings of four or more floors addresses the "stair-climbing difficulty" for the elderly. Additionally, improved standards for wall and floor soundproofing, and door passage width, comprehensively enhance residential quality.

2. Demand Release: As living standards rise, home buyers demand higher quality. The new standards prompt developers to focus on quality and performance, meeting buyers' needs. Since May, multiple mid-to-high-end improvement projects in key cities like Beijing, Shanghai, Hangzhou, Nanjing, and Chengdu have been launched, well-received by the market, and boosting housing - demand release.

III. The Second-Hand Housing Market Faces Value Divergence and Restructuring

1. Quality Premium Emerges: High-quality second-hand homes meeting the new standards gain a "quality certification" bonus, causing house prices to diverge significantly. In Hangzhou's Qianjiang New Town, compliant second-hand homes are 15%-20% more expensive than old ones in the same area. Buyers now prefer high-quality second-hand homes, pushing the market into a quality-competition era.

2. Old Housing Faces Challenges: Many pre-2000s old residences, especially multi-story buildings without elevators, encounter stricter market challenges. Unless located in high-quality school districts or with demolition potential, their prices may continue to weaken, even being ignored.

IV. Restructuring of Market Transaction Logic and Future Outlook

1. Transaction Logic Restructuring: A pricing mechanism is forming where "new housing sets standards and second-hand housing focuses on quality," encouraging step-consumption concepts. The "trade-in" rental market is also renewed, further promoting the real estate market's virtuous cycle.

2. Future Trends: With new standards and market recovery, high-quality housing supply is expected to increase. Competition will focus more on quality and services, with developers offering high-quality housing and services gaining advantages. The government will also continue to provide policy guidance and support to ensure stable and healthy market development.

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