The Decline of High-Rise Residences: A Shift Towards Sustainable Urban Living

The decline of high-rise residences is not a sudden phenomenon, as signs of a slowdown emerged as early as the second half of 2024. Cities like Beijing, Shanghai, and Hangzhou have seen a decrease in demand for high-rise apartments, with even luxury projects struggling to sell. Buyers are now preferring smaller high-rise apartments or detached houses, and the second-hand market is experiencing similar changes.

Industry experts attribute the decline of high-rise residences to two main factors: changes in market demand and shifts in buyer preferences. The market is transitioning from catering to basic needs to focusing on improved living standards, and high-rise apartments are no longer the preferred choice. Additionally, the real estate market has undergone a fundamental shift, with buyers now prioritizing residential properties over investment opportunities, and opting for low-density, high-quality housing.

The decline of high-rise residences is also being driven by policy changes, with many cities implementing "height limits" and discouraging the construction of high-rise buildings. In 2021, the Ministry of Housing and Urban-Rural Development issued a policy requiring new residential buildings in county towns to be no more than six stories high, with a maximum height of 18 stories (approximately 54 meters). This policy aims to reduce the density of urban areas, promote sustainable development, and improve the quality of life for residents.

The "height limit order" has significantly impacted the construction of new high-rise residences, with developers facing increased challenges and stricter building standards. The policy is intended to reduce the pressure on urban infrastructure, improve air quality, and enhance the overall quality of life for residents. Furthermore, upgraded building standards and approval processes are designed to ensure that new constructions meet stricter safety, environmental, and energy-efficiency requirements.

As the demand for housing shifts towards more comfortable and livable options, the high-rise residence model may become less dominant in the market. Buyers are now prioritizing comfort, amenities, and quality of life, and the real estate market must adapt to offer more personalized and satisfying living experiences. The decline of high-rise residences is expected to continue, with low-rise residences and villas becoming the preferred choice for many homebuyers. The future of urban development will likely feature more sustainable and community-oriented housing models, such as low-rise apartments, townhouses, and single-family homes, which prioritize the well-being of residents and the environment.