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By the end of 2014, China had more than 20 billion square meters of household-dwelling units, with an average of more than one dwelling unit for each household in urban area. Despite this, the newly-built homes are still launched to the market.

Data show in the first three quarters of 2015, the construction of more than 790 million square meters of dwelling units had begun and more than 4.8 billion square meters were under construction; the construction of more than 370 million square meters of dwelling units had been completed. Excluding the units for sale, about 6 billion square meters of units will be brought onto the market in the next few years, which is enough for 200 million people to live in assuming that the average per capita living space is 30 square meters.

As a general rule, the higher the ratio of working population is, the stronger the demand for housing. The ratio of working population in China has been decreasing since 2013. The number of home buyers who are between 20 and 45 is predicted to decrease by about 10 percent in the next five years.

More and more residential space hit the market since the beginning of 2015. Although the People's Bank of China has cut the interests rate for six times since last November, experts say, it is difficult for China to see the property boom of the past decade.

According to the Report on the Land Transaction Market in 300 cities, the top-tier cities have stable land supply and the floor price remains stable. Due to increasing land supply, real estate markets in third-tier and fourth-tier cities remain stagnant.