China\u2019s real estate sector is showing signs of stabilisation after years of decline, raising the prospect of a renewed demand for timber imports. As one of the largest consumers of wood products globally, any revival in China\u2019s construction activity could have significant implications for the international timber trade.<\/p>\n
At a press conference on March 9, China\u2019s Minister of Housing and Urban-Rural Development, Ni Hong, stated that since January and February, the market has shown a \u201cpositive trend of stopping declines and returning to stabilisation.\u201d These remarks come as policymakers attempt to bolster confidence in the economy, which has been weighed down by persistent real estate downturns and increasing external pressures, including US trade restrictions.<\/p>\n
Following a prolonged slump, the Chinese property sector appears to be responding to government measures aimed at restoring stability. In 2024, property investment recorded its steepest decline on record, with sales and new construction plummeting at double-digit rates. However, early indicators for 2025 suggest a less severe downturn, with housing sales and prices in China\u2019s major cities performing better than expected, according to Nomura analysts.<\/p>\n
While home prices have dropped an estimated 20\u201330% since their August 2021 peak, signs of stabilisation, or even a mild rebound, could have broader economic implications. With nearly 70% of household wealth tied to real estate, a more stable property market could encourage consumer spending and investment, supporting economic growth.<\/p>\n
The government has pledged to expand financial support for approved development projects and accelerate urban renewal initiatives. According to Ni Hong, in 2024 alone, one million housing units were renovated under these programs, with further expansion expected in 2025. Premier Li Qiang\u2019s annual work report, released on March 5, underscored the importance of stabilising the real estate market and preventing further declines while promoting the construction of modern, sustainable housing.<\/p>\n
For the timber industry, these developments could signal an uptick in Chinese demand for imported wood products. Over the past two years, China\u2019s imports of softwood and hardwood logs declined sharply as real estate activity slowed. If construction activity picks up, particularly in large-scale urban projects, the demand for timber\u2014especially softwood lumber and engineered wood products\u2014could rebound.<\/p>","protected":false},"excerpt":{"rendered":"
China\u2019s real estate sector is showing signs of stabilisation after years of decline, raising the prospect of a renewed demand for timber imports. As one of the largest consumers of wood products globally, any revival in China\u2019s construction activity could … Continue reading