From Property Management to Property Services: A Study of the Driving Mechanism and Practical Pathways for the Transformation and Development of China's Property Industry

Abstract

As China's real estate market gradually transitions from the phase of incremental development to the phase of existing stock operation, the development logic of the property management industry is undergoing profound transformations. The traditional property management model primarily focused on facility maintenance, order management, and basic support services; it played a pivotal role during the period of rapid real estate development. However, with residents' growing demands for community quality, living services, and governance participation, the traditional model has begun to face challenges in areas such as service supply, corporate operations, and governance synergy. Promoting a shift in the property management industry from a "management-oriented" approach to a "service-oriented" one has become a critical direction for the high-quality development of the sector. This paper employs a combined approach of literature review and case study, selecting three typical cases—Lize in Beijing, Xietang in Suzhou, and the Yantai High-tech Zone—to analyze the driving mechanisms and practical pathways for the transformation and development of the property management industry from perspectives such as service models, governance mechanisms, and operational methods. The study reveals that the entry of the real estate market into the existing stock phase, the policy environment's impetus, the empowerment provided by digital technologies, and the rising demand for grassroots governance have collectively driven the transformation and upgrading of the property management industry; current new models of property services are characterized mainly by diversified governance entities, enhanced quality of service content, digitalized operational methods, and community-centric service boundaries. Nevertheless, the transformation of the property management industry still faces challenges such as an incomplete regulatory framework, insufficient comprehensive service capabilities of enterprises, and an underdeveloped service evaluation mechanism. In the future, measures such as refining policy systems, enhancing corporate capabilities, and optimizing the service evaluation system should be implemented to facilitate the high-quality development of the property management industry.