Key facts
- China's prefabricated home factories are pivoting to export markets due to a domestic property crisis.
- Companies are producing more stylish prefab homes for tourism and vacation properties overseas.
- Chinese prefabricated building exports reached $4.3 billion in 2025, up from $1.7 billion in 2020.
- Key export markets include the U.S., Southeast Asia, Australia, and Western Europe.
- Domestic manufacturers cite cost advantages from cheaper labor, integrated supply chains, and scale.
- Intensifying competition has led to a price war, squeezing profits for many factories.
China's prefabricated home manufacturers are rapidly pivoting to export markets as domestic demand dwindles due to a prolonged property sector crisis and the lifting of pandemic-related curbs. Factories that once focused on quarantine units and temporary worker housing are now producing more stylish, luxurious foldable cabins for the tourism and vacation property industries abroad.
Sun Guangqing, head of production and design at Hebei Shengtai Integrating Housing, stated that survival necessitates finding new markets when domestic sales plunge. His company, like many peers, is targeting overseas consumers who are increasingly perceiving "Made in China" products favorably. This shift is part of a broader post-pandemic export boom that some Western nations have dubbed 'China shock 2.0'.
Customs data indicates that China's prefabricated building exports surged to $4.3 billion in 2025 from $1.7 billion in 2020, with the U.S., Southeast Asia, Australia, and Western Europe being key destinations. Manufacturers cite cost advantages stemming from cheaper labor, integrated local supply chains, and large-scale production as key competitive strengths. For instance, Qingdao Jingcheng Metal Technology benefits from proximity to suppliers and the port of Qingdao. Some companies can build a home in as little as 15 to 25 days and deliver it overseas within three months, often at a lower cost and faster turnaround than local production in many markets.
However, this export success masks a fierce domestic price war driven by overcapacity. Sun noted that his company has slashed prices for its expandable houses by more than half, resulting in minimal profit margins of just 1,000-2,000 yuan per unit. He anticipates that over one-third of the industry could shut down in the coming years due to this intense competition. Pang Hufeng, operations manager at another Hengshui factory, echoed concerns about low per-unit profits, though he believes these factors also make Chinese products more competitive internationally, sustaining export demand.