The property and construction sector has long been deeply intertwined with more than 50 industries, including steel, cement, home appliances, furniture, building materials, renovation, finance, and logistics. At its peak, real estate and construction together accounted for a significant share of GDP; in 2024 the combined value-added still represented about 13 percent of GDP and supported more than 70 million related jobs.
National Bureau of Statistics figures for the first half of 2026 show the downturn accelerating: national real estate development investment fell 18.0 percent year-on-year. Floor space under construction dropped 12.5 percent, new starts plunged 23.4 percent, and completions declined 23.7 percent. New commercial housing sales area fell 11.6 percent and sales value 13.6 percent. Funds available to developers dropped 20.2 percent.
Housing accounts for 60–70 percent of Chinese household wealth. The sustained property slump has sharply reduced demand for home furnishings and related goods, shrinking markets and driving business closures.
Downstream Consumer and Renovation Sectors Hit Hard
A whole-house customization designer in Guangzhou told reporters that the market has contracted by about 50 percent. Existing client relationships still generate some work, but prices have fallen roughly 5 percent. With few new homes being built, the sector is mainly digesting older inventory. He expects conditions to worsen next year and predicts that about 30 percent of peers and factories will be eliminated. “Closing earlier might mean smaller losses,” he said.
In Foshan, a major hub for kitchen and bathroom products, a renovation contractor reported that construction and related trades are struggling and many building-materials shops have shut. Industry association data previously showed more than 2,000 sanitary-ware producers clustered in the Foshan area; large numbers of small and medium enterprises are now in hidden shutdown or shifting production.
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