China’s luxury homes: Where wealth, wellness, and identity converge

As China’s economy enters a new phase of development, a fresh window of opportunity is opening for global and domestic interior design and furniture brands. TONG Global’s latest report, China’s Luxury Home Market 2025–2026, examines the cultural, economic, and design forces driving this transformation According to Tmall Luxury and New Life Group, China’s home décor market reached a value of $20.23 billion in 2023, and is projected to expand at a compound annual growth rate (CAGR) of 9.26% through 2027. The luxury furniture segment alone was worth $2.3 billion in 2023 and is forecast to grow at 4.8% CAGR through 2032. Behind these impressive market growth rates lie a deeper evolution: China’s affluent consumers are reconfiguring their understanding of home luxury, extending into whole-space, multi-sensorial design. For China’s affluent consumers, the home is becoming their most important luxury purchase. In Shanghai, more than 1,000 properties priced above RMB30 million ($4.2 million) were sold in the first half of 2025, generating RMB55.3 billion ($7.7 billion) in sales, according to the Shanghai E-House China R&D Institute, a real estate research institution located in Shanghai. That figure is nearly triple sales in the same period in 2023, underscoring how high-net-worth buyers are placing increasing value on their residential spaces over other luxury categories. For brands that tap into this opportunity, the rewards go beyond sales: they gain lasting cultural relevance in one of the world’s most future-focused luxury markets. From investment to identity: Why homes matter most The definition of home luxury in China is expanding rapidly. Beyond imported aesthetics and branded décor, today’s affluent homeowners prioritise wellness, cultural identity, and technological intelligence. Features such as advanced air filtration, circadian lighting, and restorative design are increasingly expected in top-tier properties. At the same time, kitchens, bathrooms, and terraces — once functional or secondary spaces — are being transformed into lifestyle hubs for entertaining, wellness, and daily ritual. Whole-home customization is another hallmark of this market. Buyers expect personalized layouts, material storytelling, and spatial logic that align with their identities. These homes are no longer just showcases of wealth – they are environments designed to restore, reflect, and express individuality. Opportunities and challenges for global brands For global luxury players, the opportunity is vast but rarely straightforward. Leading fashion houses such as Hermès and Fendi have extended into interiors, yet their international design signatures do not always resonate with Chinese buyers. Cultural fluency is essential: spaces must embody Chinese values and aesthetics rather than rely solely on Western references. Equally important is the question of credibility. In China’s luxury home sector, presence and association shape consumer perception as much as product quality. Who a brand chooses to collaborate with, the networks it engages, and the platforms it prioritises can determine long-term standing. Quick wins or sporadic campaigns seldom succeed. Moooi’s expansion into China illustrates these dynamics. The Dutch design house has established traction by balancing B2B partnerships with carefully curated digital storytelling across Xiaohongshu (also known as RedNote), WeChat, and Weibo. Its success highlights the value of patient market entry, reputation-building, and cultural adaptation in a highly competitive space. The road ahead Ultimately, China’s affluent consumers are reshaping the meaning of luxury at home. Style is shifting away from labels and toward bespoke, deeply personal environments where atmosphere and individuality carry greater weight than brand names. Wellness and cultural resonance now sit at the core of high-net-worth housing, and for global brands in interiors, design, and furnishings, success will depend on long-term partnerships and consistent presence rather than quick wins. Insights for this article are drawn from Tong Global’s new study, China’s Luxury Home Market 2025–2026, available for download now on the Jing Daily Reports page.

Chinese HNWIs' top purchase: Luxury homes

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Chinese HNWIs' top purchase: Luxury homes