The upstream industry situation is good for the security enterprises should grasp the initiative

As a key upstream industry in the sanitary sector, changes in real estate policies significantly influence the development of the bathroom industry. Positive news related to real estate can directly stimulate demand for bathroom products and services.

During the March 5th session of the National People's Congress, the Premier of the State Council emphasized “consumption” as a central theme in the government work report. The report highlighted the need to promote a stable and healthy real estate market, which means allowing the market to play a more decisive role in resource allocation. This shift suggests that China’s real estate market is moving from speculative investment toward consumer-driven growth, aiming to improve living conditions for all residents. For bathroom companies, this represents a significant opportunity.

Looking back at the real estate policy developments in 2014, it became clear that the first four months maintained a strict regulatory stance. However, starting in May, local governments began to ease restrictions, loosening what was previously a rigid policy. By late September and early October, new regulations on housing funds, loan policies, and purchase restrictions were further relaxed. At the most recent two sessions, for the first time in eight years, terms like “real estate regulation” or “purchase restrictions” were not mentioned, signaling a potential easing of policies and an approaching period of growth for the sector.

As the two sessions continued, the policy of reducing administrative intervention and returning to market leadership gradually took effect. Housing prices in first- and second-tier cities have been declining, while prices in third- and fourth-tier cities have stabilized. This could lead to increased activity in the real estate market, helping to reduce inventory and boost consumer demand. Additionally, with the rise of the “big home” era, initiatives such as smart home integration, one-stop solutions, and fine decoration are gaining popularity, making them more appealing to consumers. This trend is expected to drive growth across the entire home industry, including the sanitary sector.

For sanitary ware companies, adapting to the “new normal” of the economy, seizing emerging opportunities, and using innovation as a driver of growth has become a critical challenge. Companies must remain agile and forward-thinking to stay competitive in this evolving landscape.

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Suzhou Herstar Medical Technology Co., Ltd. , https://www.hosunherstar.com