China's property sector is undergoing a structural adjustment that aligns more closely with market economy principles, according to Fan Gang, Vice President of the China Society of Economic Reform and Director of the National Economic Research Institute. Speaking at the 2026 Boao Real Estate Forum, held from August 11 to 14 in Hainan under the theme "Waves and Growth," Fan noted that the housing market has already seen a relatively swift price correction. He suggested that the bottoming-out process might be faster than what Japan experienced in its own downturn.

Fan also highlighted a positive shift in consumer attitudes. Luxury apartments in major cities have become the primary driver of market sales, with buyers predominantly being young tech elites. These new-generation buyers are increasingly focused on quality of living, treating real estate more as a consumption good rather than an investment vehicle.