China unveiled a comprehensive strategy to stabilize the real estate sector in 2026, as outlined during the Central Economic Work Conference, which concluded on December 11.

The strategy calls for specific cities to strictly control and reduce housing supply, while adopting a new development approach for the real estate sector.

Authorities will manage the increasing housing supply and focus on distributing existing housing. This includes encouraging the purchase of unsold commercial real estate for conversion into affordable housing.

Additionally, the country plans to introduce more targeted policies to stimulate first-time home purchases and boost demand for housing improvements, particularly in terms of living conditions.

Local governments will offer support to developers, facilitating a shift from the traditional model focused on selling new homes to one that emphasizes property maintenance, high-quality services, and diversification.

To ensure stability during this transition, the current white list project is expected to be further expanded and utilized.

The strategy also emphasizes accelerating the establishment of a new development model for the real estate sector. This includes reforms and improvements across various systems, from development and financing to sales and beyond.