China’s “Two Sessions” annual government gathering for 2025 commenced on March 5, with the Chinese People’s Political Consultative Conference (CPPCC) and the National People’s Congress (NPC) marking the final plenary meetings for implementing the current 2021–2025 Five-Year Plan (FYP).
The government work report, delivered by Premier Li Qiang, reviewed the government’s development goals and tasks in 2024, confirmed the overall requirements and policy orientation for economic and social development in 2025, and set out major tasks for 2025, again this year including an approximate GDP growth target.
The work report reiterates a focus on progression and stability in the policy orientation, citing the guiding principles of “pursuing progress while ensuring stability” and to “stabilize expectations and boost economic vitality.” The report also includes a high-level objective of adopting a more proactive fiscal policy to provide sustained support to the economy, and this in turn enables a new tranche of local government special-purpose bonds to be issued.
More explicitly, and highly significantly, there are specific requirements to boost domestic demand and to ensure stability in the real estate market and the stock market.
The work report states that the main development targets for 2025 are expected to also lay a solid foundation for the commencement of the forthcoming FYP, which will span the 2026–2030 period. And these development targets are set out as:
- GDP growth of around 5%
- Surveyed urban unemployment rate of around 5.5%
- More than 12 million new urban jobs
- CPI increase of around 2%
- Growth in personal income in step with economic growth
- A basic equilibrium in the balance of payments
- Grain output of around 700 million metric tons
- A drop of around 3% in energy consumption per unit of GDP
- Continued improvements in the environment
Cushman & Wakefield believes that the objectives stated in the government work report hold the promise of both direct and indirect beneficial effects for China’s real estate market. In this summary report we highlight specific major tasks and related commitments for 2025, and investigate the impacts for the real estate industry, with translated excerpts from the full text of Premier Li’s speech as published in the Report on the Work of the Government.
