China’s massive residential real estate market is only going to see demand drop over the next 15 years, sales and rental giant Beike predicts.

New demand for housing by floorspace is set to drop by 2.5% a year between 2021 and 2035, the company’s research arm said in a report shared with CNBC. Beike owns and operates Lianjia, one of China’s largest housing brokerages. The primary reason for the decline is China’s aging population, according to the report.

China’s population dependency support ratio — which compares the age 15 to 64 working population with the sum of those younger or older than that age range — peaked in 2010, Beike’s report said. Three or four years after Japan and Korea reached a similar peak, their housing demand declined, the authors said.

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