Property Management Firms Poised to Benefit from Urban Renewal, Asset Revitalization, and Expanded Lifestyle Services
At the Central Urban Work Conference held on July 15, 2025, Chinese officials emphasized a strategic transition in urban development—from rapid expansion to high-quality growth. The conference laid out seven priority tasks aimed at improving urban systems, with a clear directive to build cities that are livable, resilient, and people-centered. This shift signals a significant opportunity for the property management industry, particularly in the realms of urban renewal, enhancement of existing communities, and the expansion of urban services.
Urban renewal initiatives are expected to bring about a long-term increase in both quantity and quality of projects, directly benefiting property service providers. This trend is already supported by multiple policy measures. On June 14, the General Office of the State Council issued guidance aimed at enhancing the overall urban environment through the renovation of old neighborhoods and residential areas. It proposed financial support, including subsidies and central government incentives, to assist with elevator installations in aging buildings—an area where property companies often act as project initiators. Companies such as Country Garden Services Holdings have already engaged in this space, with numerous projects across cities like Shijiazhuang, Hangzhou, and Nanjing, offering services ranging from early-stage planning to full project execution.
Apart from hardware upgrades, increasing attention is being paid to optimizing the use of existing community assets. Property companies are now tasked with transforming idle resources into profitable ventures, such as day-care centers, elderly service facilities, and convenience stores. According to research from CICC, these upgrades not only meet the evolving needs of residents but also present new revenue streams. Notably, Greentown Service Group is piloting a community development project in Changsha's Star City, converting unused basements into shared spaces that improve resident interaction and provide commercial value.
Another key area of expansion lies in lifestyle service offerings, which are poised for further integration into urban governance systems. In July 2024, Country Garden Services Holdings began managing sanitation services in Heyuan City, reflecting a trend where property firms are entrusted with broader responsibilities at the city level. Similarly, Greentown Service Group initiated its “Beautiful Town Project” in 2021, extending its operations to include rural revitalization and government service outsourcing. According to Soochow Securities, lifestyle services now account for a growing share of property firms’ revenue, with a penetration rate of 25.6% in 2023 and a market size projected to reach RMB 1.38 trillion by 2026.
Analysts from CSC Financial believe that property companies capable of securing upstream rights in urban renewal projects will be best positioned to capture these emerging opportunities. This entails not only involvement in project initiation and design but also long-term participation in community operations. The conference has effectively elevated property management to a strategic industry in the national urban agenda, reinforcing its growing role in shaping livable and efficient cities across China.
