China Urged to Act Decisively as Property Market Adjustment Deepens
Party journal signals stronger policy intervention
China’s leadership is being urged to take a more forceful and coordinated approach to stabilising the country’s struggling property market, according to a new commentary published by Qiushi, the Communist Party’s leading theoretical publication. The article calls on policymakers to abandon incremental measures in favour of a comprehensive policy package implemented decisively and at scale.
The message is significant because Qiushi is widely seen as a channel for conveying authoritative policy thinking. Its intervention suggests growing concern at senior levels that existing measures have not been sufficient to restore confidence in a sector that remains central to China’s economy and household wealth.
Property sector still critical to economic stability
Despite years of efforts to rebalance the economy, real estate continues to play an outsized role in China. The property sector supports local government revenues, underpins household balance sheets, and drives demand across industries ranging from construction materials to home appliances.
The Qiushi article emphasised that stabilising the housing market is not merely about protecting developers, but about safeguarding broader economic and consumer confidence. Weak property sentiment has weighed heavily on spending decisions, as falling home prices and unfinished projects undermine household security.
From this perspective, prolonged uncertainty risks becoming self reinforcing, with cautious consumers and investors delaying decisions in anticipation of further declines.
Criticism of piecemeal policy responses
A central theme of the commentary was frustration with what it described as piecemeal policy implementation. Over the past two years, authorities have rolled out targeted measures such as easing mortgage restrictions, supporting selected developers, and encouraging local governments to fine tune housing policies.
While these steps have provided temporary relief in some cities, Qiushi argued they have failed to change expectations at a national level. The journal called for measures that are aligned with market expectations and delivered with sufficient force in one go, rather than through fragmented adjustments that leave room for doubt.
This reflects a growing recognition that confidence driven markets require clarity and scale, not incremental signals.
Acceptance of restructuring and failures
Notably, the commentary acknowledged that China’s property market is undergoing a profound adjustment. It warned policymakers to be prepared for the possibility that some developers will face bankruptcies or restructuring as part of this transition.
This language suggests a shift away from blanket support toward a more selective approach. Rather than attempting to save all players, authorities appear increasingly willing to allow weaker firms to exit, provided systemic risks are contained and homebuyers are protected.
The challenge lies in managing this process without triggering broader financial instability or social unrest linked to unfinished housing projects.
What decisive intervention could look like
Although the Qiushi article did not outline specific policies, its tone implies support for a broad package combining financial, fiscal, and regulatory tools. This could include stronger support for project completion, clearer funding channels for viable developers, and coordinated action between central and local governments.
Equally important is communication. Markets and households are sensitive not only to policy substance but to credibility. A clear signal that authorities are committed to stabilising the sector could help reset expectations, even if the adjustment process remains uneven.
Implications for the wider economy
The property market’s trajectory will shape China’s economic outlook in the coming years. A stabilised housing sector could ease pressure on local governments, support consumer spending, and create space for growth in other areas. Continued drift, by contrast, risks dragging on confidence and prolonging the slowdown.
By publishing this commentary, Qiushi has elevated the urgency of the issue and framed decisive intervention as both necessary and acceptable, even if it involves difficult trade offs.
A policy signal to watch closely
As a voice closely aligned with top level thinking, Qiushi’s call carries weight. It suggests that tolerance for gradualism may be wearing thin, and that stronger action is under active consideration.
Whether this translates into a comprehensive policy package remains to be seen. What is clear is that stabilising the property market is being framed not as an option, but as a priority tied directly to China’s economic resilience and social stability.
