Summary of the Conference Call on China's Property Sector Industry Overview - **Industry**: China's Property Sector - **Focus**: Transformation and upgrade during the 15th Five-Year Plan (2026-2030) aimed at establishing a new development model to enhance living standards and stabilize the property market [1][7] Core Points and Arguments New Development Model - The property sector will transition from construction to providing full life-cycle property services, emphasizing quality over scale [1][9] - Key features include: - Establishing a three-pronged housing system: commodity housing for affordable buyers, rental housing for urban migrants, and social housing for low-income classes [1][9] - Optimizing production factors (people, housing, land, capital) through Hukou and land reforms [1][12] - Urban renewal initiatives to enhance city capacity and promote high-quality homes [1][9][23] Housing Supply and Demand - Land sales revenue is projected to stabilize at approximately RMB 4 trillion annually from 2026 to 2030, reducing local government reliance on land sales for fiscal revenue [1][2] - The government aims to increase annual investments in social housing and urban renewal to around RMB 0.9-1 trillion, with a focus on rectification and upgrades rather than full demolitions [2][50] - Supply-side measures include revitalizing existing lands, controlling new land supply, and enhancing the quality of property supply [3][26] Urbanization and Market Dynamics - Top-10 cities are expected to outperform in property sales, land sales, and rental markets due to urbanization and population concentration [4][65] - The new urbanization policy aims to reshape the value of satellite cities, enhancing their attractiveness through improved logistics and infrastructure [67] Policy Support and Financial Measures - The government is implementing supportive fiscal and monetary policies, including special bonds for social housing and urban renewal projects [68][71] - Local governments are encouraged to repurchase idle land and housing inventory to stimulate the market [68][69] Important but Overlooked Content - The shift in focus from "having a home" to "having a good home" reflects changing consumer preferences and the need for better living conditions [8][9] - The integration of building information modeling (BIM) technology and energy-saving innovations in housing construction is emphasized as part of promoting good-quality homes [24][23] - The expected decline in new supply due to the transition to selling completed properties may lead to cautious land purchases by property firms, impacting cash flow [22][21] Conclusion - The 15th Five-Year Plan outlines a comprehensive strategy for the transformation of China's property sector, focusing on quality, sustainability, and social equity. The emphasis on urban renewal, affordable housing, and policy support indicates a proactive approach to addressing the challenges faced by the industry.