Chongqing - After more than three decades of rapid expansion, China’s property market is entering a period of structural adjustment as homebuyer demand weakens and inventories increase across both residential and commercial real estate. The transition signals a significant shift in a sector that has long been a major driver of the world’s second-largest economy.

Fresh signals from Beijing emerged during China's 2026 Two Sessions, where the government work report outlined a range of measures aimed at stabilizing the market. The proposals include city-specific policies to better manage land and housing supply, reduce excess inventory, and support demand for better-quality homes. 

In this episode of Global Vision, James Macdonald, head of research at Savills China, discusses the underlying logic behind China’s property market shifting from rapid expansion to structural adjustment, and how policy signals from the Two Sessions are helping stabilize market expectations. He also highlights emerging opportunities in western cities such as Chongqing, where industrial upgrading and manufacturing investment are creating new drivers of real estate demand and development.