In recent years, companies that once specialized in COVID-19 testing are now turning their attention to residential property inspections. This shift in focus comes as the Chinese government seeks to establish a comprehensive house safety management system.
Background
The Chinese Ministry of Housing and Urban-Rural Development (MHURD) recently announced its plans to research and establish a house health check, house pension, and house insurance system. The goal is to create a long-term mechanism for house safety management throughout the entire lifecycle of a house. Currently, 22 cities, including Shanghai, are piloting this initiative.
The Market for Residential Property Inspections
The Chinese government’s move has sparked market interest in the residential property inspection sector. According to a report by Caijing, the market for existing residential property inspections is expected to reach 489.1 billion yuan in 2024, and is projected to grow annually, reaching 1.525 trillion yuan by 2035.
The Importance of Residential Property Inspections
The concept of house health checks and comprehensive house safety management is essential. Many residential buildings in China have a design life of 50 years, but many of them experience significant wear and tear after just 20 years of use. This means that many houses purchased by homeowners may not meet the basic design and construction standards, and may not be able to withstand a 50-year lifespan.
The Responsibility of Stakeholders
In such cases, the concept of comprehensive house safety management should hold developers, builders, and certification agencies accountable. They should be responsible for inspections and repairs. Homeowners should not be solely responsible for paying for inspections if their houses have serious quality issues or design flaws.
The Role of Companies with Previous Experience in COVID-19 Testing
Several companies that previously specialized in COVID-19 testing are now venturing into residential property inspections. One such company, which had a limited involvement in COVID-19 testing during the pandemic, has now boldly declared residential property inspections as its core business. This suggests that residential property inspections will be a profitable sector in the future.
The Significance of Early Entry
The 22 pilot cities, led by Shanghai, are in urgent need of comprehensive house inspections, as a significant number of existing houses are approaching the end of their lifespan. Companies and investors that enter this market early will have a better chance of success.
Conclusion
The shift of companies from COVID-19 testing to residential property inspections reflects the Chinese government’s efforts to ensure the safety and quality of residential properties. As the market for residential property inspections grows, companies with a strong presence in this sector will have the opportunity to achieve significant profits.
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