China could consider direct housing subsidies for young people as part of broader efforts to bolster consumption and support the real estate sector's structural transition, economists from government-backed think tanks and analysts said, noting that the market's stabilization will require sustained policy backing.

"Internationally, housing vouchers are widely used. China could explore issuing housing consumption vouchers — covering housing as well as decor and renovations — to support young people's housing demand," said Wang Wei, senior researcher and former director of the Institute of Market Economy at the Development Research Center of the State Council, China's Cabinet.

Wang told China Daily that this would help address the challenges facing some young urban residents whose housing needs cannot be fully met, adding that stabilizing the property market is vital for reinforcing households' wealth growth and spending confidence.

Echoing Wang's views, Betty Wang, head of Northeast Asia research at Oxford Economics, said that more policy innovations to expand the financing channels for both homebuyers and developers are still needed, such as helping them get more funding through policy-oriented banks and local government special bonds.

She added that China's property sector is undergoing a fundamental shift away from a land-finance-driven, high-leverage model toward a more sustainable, affordability-oriented and government-supported structure.

"Such a transition cannot be completed quickly. The sector will require time to adjust, and continued policy support will be essential to ensure that the adjustment proceeds in an orderly, manageable way," she said.