The slowdown in real estate sales will help the country's furniture sector and other building products producers raise their environmental standards, and weed out weak industry players, according to a leading industry body.
China's real estate market has begun to feel the pinch after booming in the past years, causing concerns for many sectors, including construction and building materials.
But Zhu Changling, president of the China National Furniture Association, insisted the slowdown has already led to what he called an industry reshuffle that has been beneficial to the "most-innovative players with vision".
The association, with more than 3,000 corporate members throughout the country, is considered to have a strong influence on China's furniture industry.
"Companies that want to survive and develop a dominant position have focused on energy conservation, environmental products and low-carbon emissions, while coming up with new techniques and innovation in their products and setting new trends," said Zhu.
"This will definitely win them more consumers and eliminate competitors."
His optimism is shared by Tony Chung at one of the largest suppliers of intelligent lock and security solutions.
"China has suffered a property market downturn, after the government curbed policies, and a lot of industries have suffered," said the president for greater China at Sweden's Assa Abloy Group, the world's largest lock manufacturer by sales volume.
"However, I'm not worried about the downturn and I view it as an opportunity to do better, and win bigger market share through innovation."
Assa Abloy provides door-opening solutions and manufactures mechanical and electronic locks under brands including Yale and HID Global.
It bought Panpan, one of China's largest safety door manufacturers, in 2010 to boost its market position, but Chung said some of its weaker competitors have fallen by the wayside because of the slowdown.
Despite the slower construction and housing market, Chung said Assa Abloy will continue to make "selective acquisitions" in China, in not only companies in the lock and safety door sectors.
Like many international companies, Chung said Assa Abloy is also banking on the proliferation of the middle class in countries such as China and other emerging markets, on the belief that when people get wealthier, they will spend more money on door openings and safety solutions.
Half of its total revenue will be generated from the emerging markets by 2025, while China will remain one of its fastest-growing and most important markets, said Chung.
