As China’s property downturn grinds on, foreign suppliers strive to adapt | South China Morning Post

VirtualRichDream · 2026-03-28T04:17:21+00:00

As China's property downturn persists, foreign companies like Otis adapt by shifting focus from new construction to modernization services for ageing buildings, capitalizing on government-led urban renewal initiatives to drive future growth.

VirtualRichDream

2026-03-28 04:17:21

Abstract generation in progress

As China’s property downturn drags on, foreign companies in downstream industries are revamping their business models to cope with a decline in new construction projects, but the country’s stable policy environment is helping to ease the transition, according to an executive at a leading US supplier.

Lift giant Otis is looking for new growth momentum in China’s government-led urban renewal drive, which includes a push to install or upgrade lift systems in ageing apartment buildings, said Judy Marks, the company’s CEO and president.

“We have been migrating our business, recognising the challenges that started in 2021 and are continuing in the property market,” she said in an interview while attending the China Development Forum in Beijing this week.

The company built its China business primarily by supplying lifts to new construction projects, as it rode the country’s two-decade-long property boom. Now, it is pivoting towards services, providing modernisation solutions for buildings with ageing or no lifts, she said.

“Out of 11 million elevators in China, about 900,000 are currently ready for refurbishment – and that number is expected to grow by over 10 per cent annually,” Marks said. “We have the solutions, the installers and the service teams ready to meet that demand.”

Urban renewal is included as a strategic development goal in China’s latest five-year plan, released earlier this month, which sets a target of renovating 500,000 dilapidated and dangerous units of urban housing by 2030.

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