Core Viewpoint - The real estate industry is transitioning from a focus on quantity to a focus on quality, technology, and service as it navigates through challenging times [1][2][17]. Policy Changes and Market Dynamics - The end of the purchase restrictions marks the most relaxed environment for the real estate sector in 20 years, signaling the conclusion of a real estate bull market [2]. - The term "bottoming out" has become common in government assessments of the real estate market, indicating a shift in focus towards stabilizing the industry [3][4]. - The government is implementing policies to ensure project delivery and financial security while exploring new development models to help companies recover from losses [4][5]. Liquidity and Delivery Challenges - The lack of liquidity in the real estate market poses significant risks, as it discourages consumer purchases and hampers cash recovery for companies [7][8]. - The period from 2021 to 2024 is critical for delivery pressures, with 2024 potentially being the last major delivery year for the industry [10]. - The government has introduced measures to stimulate liquidity, including policies focused on timely delivery, financial safety, and ensuring quality housing [9][12]. Shift in Housing Demand - There is a notable shift in housing demand from mere availability to quality, with the urban residential unit ratio reaching 1.07 in 2023, indicating a transition from "having a home" to "having a good home" [15]. - The emphasis on "good housing" is expected to intensify by 2025, prompting leading real estate companies to enhance their focus on safety, comfort, and sustainability [15]. New Development Models - The concept of a "new development model" has gained traction, with government reports emphasizing the need for affordable housing and a coordinated mechanism involving people, housing, land, and finance [20][21]. - Real estate companies are encouraged to diversify their business models beyond traditional home sales, exploring areas such as rental housing, property management, and real estate agency services [22]. Financial Resilience and Business Diversification - Many companies are beginning to adopt long-term strategies and light asset operations, supported by government policies [24]. - For instance, Longfor Group has successfully integrated development, operation, and service sectors, becoming one of the few profitable companies in 2024 [26]. - Longfor's operational and service segments generated significant revenue, contributing to overall financial stability [27][32]. Future Growth and Market Potential - The expansion of the middle class in first- and second-tier cities is expected to drive demand for high-quality shopping centers and premium rental apartments [35]. - The shift towards service-oriented operations in commercial real estate is being supported by government initiatives to revitalize existing assets [37]. - The strategy of "space as a service" is being embraced by companies like Longfor, which has diversified its business portfolio to include commercial investment and asset management [40]. Conclusion - As the industry transitions from capital-driven growth to capability-driven growth, companies must leverage policy benefits to enhance service quality and operational efficiency, positioning themselves for success in a competitive landscape [40].