The environment for China's property companies will remain challenging in 2025, with new home sales expected to decline by 15% to 7.3 trillion yuan, Fitch Ratings said in a Wednesday release.

Even with the stability provided by government support measures, the property market still faces significant headwinds such as high inventory levels, weak employment, and declining affordability, S&P's senior director and head of China property Tyran Kim said.

New home prices will continue to be constrained especially with low rental yield in major cities, Kim said.

Housing construction activity will also further weaken amid developers' reduced appetite and capacity to acquire land, according to the analyst.

In the commercial real estate sector, both mainland China and Hong Kong will face pressure on occupancy rates and rental income due to office oversupply and eroding retail sales, Kim said.