China will step up urban renewal and efforts to stabilise its property market in 2026 at the start of its latest Five-Year Plan (2026-2030), according to a readout of a housing policy conference released yesterday.
The conference, held in Beijing on December 22-23, mapped out key housing development tasks for the Five-Year Plan period, and called next year a critical starting point for policy implementation, according to the readout published by the housing ministry’s official outlet.
A major focus will be the “vigorous implementation of urban renewal”, alongside efforts to stabilise the real estate market, prevent and defuse risks and improve the supply of affordable housing.
China’s property sector, once a key engine of growth, has been in persistent decline since mid-2021, despite repeated government pledges to shore up the sector. Weak home sales and falling prices have weighed on consumer confidence and homeowners, with around 70 per cent of household wealth tied to real estate.
Developers have also faced liquidity strains. China Vanke said in a filing on Monday it had won approval to extend the grace period for a 2 billion yuan ($284.2 million) bond repayment due on December 15.
On market stabilisation, officials said policies would be tailored to local conditions to manage supply and reduce inventories. Measures include renovating urban villages and supporting local governments in purchasing existing homes for use as affordable housing.
Officials also said China would push a shift toward selling finished new homes, so “buyers can see what they are getting”.
The conference pledged to strengthen the “project whitelist” mechanism, a government-backed programme under which local officials nominate stalled residential projects for expedited bank financing, and urged city governments to make full use of their discretion to adjust and optimise property policies.
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