The revised national standard for residential projects aims to boost quality and market growth, but could pile more pressure on developers.
Decades ago, the biggest concern for a homebuyer in China was the price of the property, and whether they could truly afford it. Today, the focus has shifted to quality.
Yet, in the country’s fast-growing urban neighborhoods, residents in apartment blocks have long had to endure myriad frustrations, such as cooking smells wafting in via poor ventilation, constant noise due to a lack of sound insulation, and dangerously low balcony railings.
That could all be about to change.
In March, during this year’s “Two Sessions,” the annual meetings of China’s top legislature and political advisory body, Premier Li Qiang introduced the concept of “quality homes” in his Government Work Report. The document defines the term as properties that prioritize safety, comfort, sustainability, and smart technology at every stage of development, from construction through maintenance.
Shortly after, the Ministry of Housing and Urban-Rural Development released a revised Residential Building Code, its first update since 2011. Effective from May 1, the code includes several new standards aimed at elevating living conditions via improved ceiling height, ventilation, access to natural sunlight, and soundproofing.
The move has led to extensive discussions, while experts say it sets the tone for enhancing the livability of Chinese homes.
A GIF shows the first “vertical forest” residential community in Chengdu, Sichuan province. From @People’s Daily on Weibo
Some major cities were ahead of the curve. For example, in Chengdu, capital of the southwestern Sichuan province, and Suzhou in the eastern Jiangsu province, local governments have in recent years unveiled a series of regulations in response to market demands. Now, after the updated national standard, additional provincial regions including Beijing, Shanghai, Shanxi, Jiangsu, and Shandong are following suit, rolling out their own measures.
In addition to the shift being in line with the central government’s focus on improving livelihoods and “enhancing quality of life,” experts say that the demand for higher-quality housing is expected to play a key role in driving growth in the sluggish real estate sector, and in turn contribute to China achieving its 5% GDP growth target for 2025.
“The construction of ‘quality homes’ has the potential to unlock a trillion-dollar market for domestic consumption by driving the development of related industries, from green building materials to smart home technology,” Cui Ji, deputy director of Shanghai’s EJ Real Estate R&D Institute, told Sixth Tone.
Waves of change
Residential housing in China has evolved significantly over the decades, as the tastes and demands of consumers have changed.
The first wave of construction, exemplified by the tube-shaped apartments built before 1990 by the government or state-backed enterprises for their workers, often lacked private kitchens and bathrooms, while the ’90s saw a shift toward housing with full amenities built by private companies, and were traded on the market. However, these developments still mostly lacked landscaping, thoughtful design, and property management.
A third wave between 2009 and 2014 saw real estate developers make dramatic improvements by incorporating underground parking, green spaces, and shared amenities. However, these communities today tend to experience poor traffic flow, inadequate maintenance, and other challenges.
The revised Residential Building Code, which is seen as representing the start of the fourth wave of construction regulations, translates “quality homes” into quantifiable standards.
One notable change is that the minimum ceiling height for a residential property has been raised from 2.8 meters to 3 meters. Though the average adult male in China stands at 1.7 meters tall, the previous standard was deemed insufficient and potentially confining, especially considering modern preferences for installing underfloor heating and ceiling ventilation.
In addition, each new apartment must now include at least one bedroom or living room that receives one hour or more of natural sunlight on the winter solstice, while soundproofing is now required to reach more than 50 decibels — the level of a quiet conversation — compared with the previous 45 decibels. The latter addresses a common issue in modern apartment living, as highlighted by the popularity of “floor shakers,” devices used to create a constant thumping noise as retaliation against noisy neighbors.
To improve accessibility for elderly and disabled people, new buildings with four floors or more must now have elevators. Before this year, the rule applied only to buildings with at least seven floors.
While these standards are mandatory for new constructions, Ni Hong, the minister of housing and urban-rural development, has said that efforts should be made to also upgrade older properties to meet the revised code.
Slow and steady?
The policy change has largely received support from the public, as it addresses a series of common complaints among urban residents.
“When choosing a home nowadays, we not only pay attention to traditional factors, such as location and price, but we also have higher expectations on quality and technological factors,” said Sun Liyan, a homebuyer in the northeastern Heilongjiang province.
Writing on China’s X-like Weibo, one user expressed hope that the revised code will bring significant progress in soundproofing: “In today’s apartments, a cough or sneeze at midnight can clearly be heard by your neighbors upstairs and downstairs. Even ordinary family conversations can be overheard next door, which is extremely awkward and leaves no privacy.”
However, the impact of the policy is expected to take time.
A residential project in Beijing designed on the “quality homes” concept. From Weibo
Real estate developers, which sit upstream of the industry chain, will need to optimize their design and construction processes while contending with higher costs. This has the potential to place further strain on businesses already grappling with cash flow issues, Guo Zhichao, a risk control engineer at a state-owned developer, told Sixth Tone.
He explained that a 10-centimeter increase in floor height could increase the cost of construction by up to 3%, while soundproofing will add about 200 yuan per square meter.
“In the long term, cost pressures may be partially offset through smart construction and supply chain optimization,” Guo said. “But in the short term, it could exacerbate the divide among real estate companies, with less technologically advanced firms facing the risk of being eliminated.”
The revised code could also spell mixed fortunes for the secondhand housing market.
Newer homes — those under 10 years old — that largely align with the new criteria in terms of construction quality, design, and overall living experience are expected to experience steady price growth, according to Cui at the R&D institute. “This alignment will likely contribute to price stability and potential appreciation,” she said.
Yet, older properties, particularly those over 20 years old or with ceiling heights under 2.8 meters, could encounter liquidity challenges, she added, as their market value will likely decline, with longer sales cycles and diminished market mobility.
A real estate agent in Shanghai surnamed Gu acknowledged that the impact won’t be immediate, as it will still take one or two years for property developments built under the new standards to become available. However, he warned that “these newly built ‘quality homes’ may be pricier, meaning they won’t be affordable for everyone.”
Editor: Hao Qibao.
(Header image: A real estate promotion in Taiyuan, Shanxi province, March 14, 2025. VCG)