China’s “Two Sessions” annual government gathering for 2026 commenced on March 4, with the Chinese People’s Political Consultative Conference (CPPCC) and the National People’s Congress (NPC) marking the first plenary meetings for implementing the new 15th Five-Year Plan (FYP), covering the period 2026 to 2030.
The government work report was delivered by Premier Li Qiang at the opening meeting of the NPC on March 5. The report reviewed the government’s development goals and tasks in 2025, stated the main objectives and major tasks for the new FYP period, confirmed the overall requirements and policy orientation for economic and social development in 2026, and set out major tasks for 2026. Key points are set out below.
Economic Growth Target
The government has set a GDP growth target in the range of 4.5%–5%. As the first year of the 15th FYP, the policy framework balances growth stabilization with structural adjustment. This approach provides strong macroeconomic support for the stabilization and gradual recovery of the commercial real estate market.
Consumption-Boosting Initiatives
Consumption will be supported by two major initiatives. Firstly, a RMB250 billion ultra-long-term special treasury bond program to promote old-for-new replacement. And secondly, a RMB100 billion fiscal–financial synergy fund to stimulate domestic demand. The broader upgrade in service consumption will provide fresh structural momentum for growth in the retail property sector.
Emerging Smart Economy
The expansion of “AI+” initiatives, the development of intelligent entities, and the construction of hyperscale intelligent computing clusters will steadily increase the added-value contribution of key digital economy industries. As a major source of demand in core city office markets, the AI sector is reshaping occupier requirements and spurring a new investment cycle in data centers and related industrial parks.
Real Estate Policy — “Control New Supply, Reduce Inventory, Optimize Supply”
The government has articulated a clear three-tiered policy direction — city-specific control of new supply, accelerated inventory reduction, and optimized supply structure — to revitalize existing commercial housing stock through multiple channels. The continued advancement of “quality housing” initiatives signals the acceleration of China’s shift from growth driven by new development to value enhancement through existing stock.
Capital Market Reform and REIT Development
Ongoing reforms to improve comprehensive investment and financing mechanisms — together with expanded exit channels for private equity and venture capital — will create new opportunities for growth in the commercial real estate investment market.
Further Expanding High-Level Opening Up
Demand for high-standard warehousing from cross-border e-commerce will effectively drive structural growth in the logistics market.
New Urbanization and Urban Renewal
For the first time, the concept of “building innovative industrial and business communities” has been included in the government work report. Priority development of the Beijing–Tianjin–Hebei region, the Yangtze River Delta, and the Greater Bay Area as world-class urban clusters will accelerate. Urban renewal and the revitalization of existing assets will unlock value reassessment opportunities across all property types.
Accelerating Green Transition
China’s “dual control” environmental framework has evolved from a focus solely on carbon intensity to a dual focus on total carbon emissions and intensity. Green building standards are increasingly expanding from new construction to the retrofit and operational upgrade of existing buildings, reinforcing the trajectory toward sustainable urban development.
Cushman & Wakefield believes that the objectives stated in the government work report hold the promise of beneficial effects for China’s real estate market. In this summary report we highlight eight specific areas from the work report and investigate the impacts for the real estate industry, with translated excerpts from the text of Premier Li’s speech as published in the Report on the Work of the Government.
