Home sales spur industry changes

For China's property developers, 2014 may prove to be a milestone year. At the beginning of last year, several small- and medium-sized builders were teetering on the edge of bankruptcy. To bolster sales, many had no choice but to slash prices.

As the market started to sag late last year, authorities responded with supportive policies including the cancellation of earlier purchasing and lending restrictions. So far, the market has yet to recover, suggesting that the golden age of Chinese property development may be over.

This year, major property developers will have to focus on improving management and controlling cost. Although growth in home construction has decelerated, developers can still find plenty of opportunities in the country's unsold housing inventories.

Over the coming years, developers are likely to look beyond the residential market and expand their horizons into China's agriculture, medical facility, Internet, finance and entertainment industries.

To support their expanding business interests, developers will have to tap more diverse financing channels. China's maturing housing market will compel developers to strike a better balance between financing and construction as well as operations.