BEIJING, Dec 25 - China will persist in efforts to stabilize and prevent further declines in its real estate market, according to a report by China Construction News. The housing regulator held a work conference this week to discuss future strategies.
The government plans to promote reforms in the commercial housing sales system and expand urban village renovations beyond the addition of one million housing units. Strict control over the supply of commercial housing will be maintained while increasing the availability of affordable housing for new citizens, young residents, and migrant workers.
Since a government-led initiative to rein in highly leveraged developers triggered a crisis in 2021, policymakers have intensified measures to revive the real estate sector. Recent actions aimed at encouraging home demand include lowering mortgage rates, reducing minimum down-payments, and offering tax incentives to decrease housing transaction costs.
Recent data indicates that the real estate market is showing signs of stabilization, with home transactions in October and November reporting year-on-year and month-on-month growth for two consecutive months. Additionally, home prices in November fell at the slowest rate in 17 months, a trend attributed to government interventions.
An official from the Central Financial and Economic Affairs Commission has urged for immediate adoption of policy measures that directly impact the stabilization of the real estate market, advocating for greater autonomy for local governments in purchasing housing stock.