The real estate sector in 2025 is advancing the clearance of debt risks with unprecedented force. Authoritative data from the China Index Academy shows that, as of December, 21 financially distressed property developers have completed or obtained approval for debt restructuring or reorganization, cumulatively resolving debt amounting to 1.2 trillion yuan, involving total liabilities exceeding 2 trillion yuan. The more critical shift lies in the approach to debt resolution, which has comprehensively moved away from passive extensions that "buy time for recovery" towards substantive debt reduction. Multiple sets of core data clearly outline the industry's transition path from "debt relief" to "operational rebirth."
The shift from extensions to debt cuts is stark, with the average debt reduction ratio exceeding 50%. Previously, developers primarily relied on extensions for a buffer, but 2025's data confirms a fundamental change in industry logic—substantive debt reduction has become the mainstream. Most companies have seen their offshore debt restructuring involve a reduction of over 50%, with developers like Long Guang achieving a high ratio of up to 70%. This signifies that debt pressure is no longer just "deferred repayment" but is truly achieving a "scale reduction."
The debt resolution data from leading developers is highly indicative of market trends. SUNAC achieved a 100% reduction by clearing its $9.6 billion offshore debt through a full debt-to-equity swap, the first instance of a major developer completely eliminating its offshore debt, which is expected to reduce its debt repayment pressure by nearly 60 billion yuan. CIFI Holdings saw the simultaneous implementation of its onshore and offshore debt restructuring, involving $8.1 billion (approximately 56.7 billion yuan) in offshore principal and interest, with a 67% reduction, while its onshore debt was cut by over 50%, reducing its total interest-bearing debt from 84.2 billion yuan to around 50 billion yuan. Country Garden achieved an approximately 66% reduction in its offshore debt and a nearly 50% cut in its onshore debt, achieving a substantive easing of financial pressure through debt structure optimization. Jinke Group set an industry record with the largest reorganization, resolving 147 billion yuan in debt through a judicial process that successfully addressed the claims of 8,400 creditors with diverse solutions.
By the end of 2025, eight companies, including SUNAC, Country Garden, and CIFI, had completed both onshore and offshore debt restructuring. Companies like Zhongliang and Dangdai completed their offshore debt restructuring, while Kaisa and Shimao obtained approval for their offshore debt plans, indicating a trend of "batch settlements" in the debt resolution process.
The successful resolution of 1.2 trillion yuan in debt is attributable to the precise application of diversified tools, with data showcasing the results of different approaches. In the market-based negotiation path, SUNAC's full debt-to-equity swap received support from 98.5% of creditors by number, representing 94.5% of the debt amount. The remaining HK$858 million loan was resolved through an "extension + new share issuance" closed-loop, with the major shareholder further aligning interests by converting a $450 million interest-free loan into equity. In the judicial reorganization path, Jinke, after a two-and-a-half-year process, saw the full contribution of 2.628 billion yuan in reorganization investment funds and the completion of the transfer of 5.294 billion shares from capital reserves, achieving comprehensive settlement through a mix of "cash + shares + trust beneficiary rights." CIFI achieved efficient debt resolution through a cash repurchase of onshore debt, using 220 million yuan to resolve the first batch of 1.1 billion yuan in debt. The application of combined tools like cash recovery, debt-to-equity swaps, and asset-for-debt swaps means the company will not need to pay principal or interest on its onshore debt for the next two years.
Debt resolution is not the end goal; sustainable operation is the core. A series of data points show that developers who have completed debt restructuring are accelerating the recovery of their "self-hematopoietic" capacity. Regarding project delivery guarantees, from January to November 2025, Jinke delivered 14,300 residential and commercial units, with a total delivery area of 2.2 million square meters. SUNAC cumulatively delivered over 668,000 units from 2022 to 2024 and plans to deliver 60,000 units in 2025 to complete its delivery commitment. In the first half of 2025, 55 property developers collectively delivered over 500,000 units, with companies like Longfor and China Overseas maintaining high delivery satisfaction rates.
The transition to light-asset models is showing significant results. Shui On Land's core profit in the first half of 2025 surged 144% year-on-year to 263 million yuan, with three new light-asset projects added. Among them, the "Yongxinli" project in Shanghai has an estimated potential value exceeding 30 billion yuan, and contracted property sales soared 457% to 3.473 billion yuan. SUNAC established Erjin Management to focus on revitalizing non-performing assets and urban renewal, while Country Garden is pushing into intelligent construction. In the first three quarters of 2025, the top 20 developers saw a 31% year-on-year increase in newly contracted construction area for project management. The sales end shows structural bright spots; the townhouses in Shui On Land's 'Crystal Plaza·Liuhe' project in Shanghai sold out within a week of pre-sales. In the first half of 2025, the sales area of high-end residential properties in Shanghai with a total price exceeding 30 million yuan per unit reached 313,000 square meters, with nearly 6 out of every 10 top-tier luxury homes sold nationwide originating from Shanghai.
Behind the 1.2 trillion yuan debt clearance lies a profound transformation in the industry's development model. Data indicates that developers are gradually moving away from high-leverage expansion. CIFI's scale of interest-bearing debt is set to fall back to 2017 levels, with its debt structure shifting from "short-term, high-interest" to "long-term, low-interest." Shui On Land adheres to the principle of stable cash flow, expanding scale through its light-asset model without pushing up its leverage ratio.
Liu Shui, Director of Enterprise Research at the China Index Academy, pointed out that debt restructuring has addressed the "stock" problem. Data such as the continued easing of project delivery pressure in 2025 and the significant growth in the light-asset track confirm that the industry is shifting from scale expansion to quality development. In the future, the precision of asset operation, the ability to monetize light-asset models, and the depth of exploration into new business tracks will become key indicators of a developer's core competitiveness.
The landing of trillion-yuan debt resolution is not the end of the industry's story but a new starting point supported by data and centered on transformation. As debt risks are gradually cleared and operational models continue to optimize, the real estate industry is moving towards a more robust and healthier direction, reconstructing its value through urban renewal and the保障 of people's livelihoods.
Comments