In recent years, the real estate industry in mainland China has been on a downward trend, with employees in the sector facing layoffs and pay cuts. Mr. Yang, in his 40s, was laid off by the real estate giant Midea Real Estate and switched to another state-owned enterprise, where his salary was reduced by half. However, he is still unsure of how long he can remain in his new position. Many young people majoring in architecture have also experienced the hardships of the industry firsthand.
According to Central News Agency, Mr. Yang majored in architecture in college and graduated during the era of massive urban development in Chinese cities in the 2000s. He worked for a state-owned design institute at that time and was swamped with projects, taking charge of the construction of a high school in Shanghai by the age of 25.
As the real estate industry in China has been declining, Mr. Yang, who was the design director at Midea Real Estate, was “optimized” (a term used by many companies for layoffs) and left the company in 2022. Despite many of his colleagues and peers switching careers, he believes that what he has learned throughout his life is in this field and continues to seek employment in real estate.
Midea Real Estate went public in 2018 when the real estate market was at a high point. By 2024, the company decided to divest its real estate development business and shift its focus to property management.
Mr. Yang’s experience reflects the situation in the entire real estate industry in mainland China. In July 2024, he joined a real estate company in Shanghai but was “optimized” again after just over a month. He then entered a state-owned enterprise in Shandong in September and remains there to this day.
He mentioned that the company he works for now is primarily in the steel industry, with an annual revenue exceeding 100 billion RMB. Real estate development is only a small part of the business, so the concern about being burdened by real estate debt is minimal.
Mr. Yang explained that because the local government owed the steel conglomerate too much money that could not be repaid, they “pushed” a large amount of land into the hands of the company to settle the debt. The company decided to develop it into a cultural tourism project, which will be completed gradually over a period of 10 years.
Despite holding the title of design director, his salary is only half of what he used to earn at Midea Real Estate. He expressed that this is not a problem of the company but an issue within the industry. Mr. Yang is uncertain how long he can sustain his current position.
Due to the overall poor economic situation in China, Mr. Yang mentioned that the company could potentially be sold off at any time, adding to the uncertainty about the future.
According to the report, more young people majoring in architecture in mainland China are struggling with the dilemma of whether to leave the industry. A young individual, around 30 years old, who worked at a research institute for architectural design in Zhejiang province, expressed, “It’s too demanding!” He and his colleagues often work overtime, especially when the real estate market is sluggish, leading to more intense overtime work as they strive to please clients by submitting numerous design drafts, which consumes a significant amount of time and energy.
Since 2021, housing prices in China began to decline. According to data from the National Bureau of Statistics of the Communist Party of China, in 2024, national real estate development investment decreased by 10.6% compared to the previous year, new housing sales area fell by 12.9%, and new housing sales revenue dropped by 17.1%.