China’s Property Market Shift

China’s Property Market Shift

On 25 August 2025, China Evergrande Group was officially delisted from the Hong Kong Stock Exchange, marking the conclusion of a period of financial turbulence that had drawn worldwide attention. While this closes a chapter for one of the country’s largest developers, it also highlights a broader transition ain China’s economic model.

For years, the property sector was a central driver of growth, shaping consumer confidence and fueling demand across industries. Today, however, the landscape is changing. Households are more cautious about real estate spending, which in turn affects demand for housing-related products and lifestyle consumption. This shift is prompting businesses, both domestic and international, to adjust strategies.

Looking ahead, China is placing greater emphasis on what are described as “new productive forces”. These are sectors such as renewable energy, advanced manufacturing, sustainable construction, and green infrastructure. These priorities align closely with areas of expertise where many European companies already hold strong positions, from offshore wind and high-tech equipment to circular economy solutions.

For international firms, the current environment offers two key takeaways:

• Adapting to new consumer patterns: Companies tied to property-driven consumption may face slower demand growth.
• Exploring new opportunities: China’s shift toward innovation and sustainability is creating space for collaboration and investment, particularly in green technology and advanced industry.

At the same time, lower property prices in major cities such as Shanghai are reducing operating costs for foreign businesses, especially with office space and expatriate housing becoming more affordable.

In short, while the property-led growth model is receding, new avenues are opening for those ready to engage with China’s evolving economic priorities.