Cranes are seen at a construction site of a housing complex in Beijing. Photo: VCG

Like last December's Central Economic Work Conference, the Government Work Report unveiled at the two sessions recently reiterates the importance of "making continued efforts to stem the downturn and restore stability in the real estate market." While the overall tone remains consistent, new implications are introduced.

The Government Work Report has elaborated on the implementation path of the policies, noting that China will introduce city-specific policies on adjusting or reducing property transaction restrictions, which was not addressed during the Central Economic Work Conference, which indicates that there could be more optimizations to cut certain purchase restrictions in various regions this year.

The Government Work Report also noted that to meet people's demand for high-quality housing, China will improve the standards and regulations on building quality homes that are safe, comfortable, eco-friendly, and smart.

The Government Work Report has proposed the standard of high-quality housing into four dimensions: safe, comfortable, eco-friendly, and smart. The establishment of this standard system signifies that the industry will accelerate the construction of a new development model and transition to a new stage of high-quality development.

On March 9, Minister of Housing and Urban-Rural Development Ni Hong noted at a press conference on the theme of people's livelihoods that the ministry has been drafting guidelines and standards for quality home construction, including a notable requirement that the minimum ceiling height should be no lower than 3 meters.

This new requirement has garnered significant attention from the public. This adjustment in the planning of ceiling heights indicates that there will still be important measures for high-quality housing, and relevant institutional norms and practical work will be further strengthened.

For the first time, the phrase "building quality homes" appeared in the Government Work Report. This change from merely aspiring to own a home to seeking a quality living environment reflects the growing sense of pursuing true happiness among the public and the evolving dynamics of supply and demand in China's real estate market.

To promote the construction of "safe, comfortable, eco-friendly, and smart" quality homes, three key measures have been clearly outlined.

First, set up the standards. Adjustments to construction standards are necessary to address consumer demands, focusing on various criteria such as height, temperature, humidity, cleanliness, and brightness. For instance, increasing the ceiling height represents an optimization in the "height" category.

Second, strengthen technology. It is crucial to integrate new and innovative technologies into housing development, including practical advancements that benefit the general public and improving policies that support smart homes.

Third, emphasize project quality. For instance, organizing a national quality housing design competition will effectively enhance the supply of various high-quality housing projects.

The initiative has significant implications for the industry, as it opens up extensive opportunities for the adoption of new technologies, new products, and new building materials. Furthermore, it has the potential to significantly boost domestic demand and stimulate consumption. Efforts in this area are expected to profoundly impact the real estate sector and unlock greater consumption potential.

The stabilization of the real estate market in the fourth quarter of 2024 marked the beginning of a positive shift. Following that period and into the first two months of this year, the groundwork for real estate sector stability has strengthened considerably. Both housing and land transaction volumes recovered during the first two months of this year. It is crucial to shore up this upward trajectory of the industry, which has persisted for five consecutive months now.

In 2025, the real estate market is expected to experience positive growth driven by favorable policies and significant growth potential. For instance, the demand for better housing has surged, as evidenced by record-high transactions of second-hand homes in 2024 in China. This trend suggests that 2025 may witness a substantial increase in housing demand, providing strong support for the market. As a result, the real estate sector is likely to develop steadily and positively.

The author is research director at Shanghai-based E-house China R&D Institute. bizopinion@globaltimes.com.cn