China has implemented several policy measures in 2024 to ease the financial burden on homebuyers and to address the downturn in the real estate market. These efforts have aimed to shift the industry toward sustainable growth while fostering recovery. Despite recent improvements, experts suggest that stronger and more targeted actions are required to maintain the momentum.
Key Policy Measures and Recent Developments
New home sales in 30 key cities, monitored by the China Real Estate Information Corporation, saw significant growth in November, marking a 3% rise from the previous month and a 20% increase compared to the same period last year. Additionally, the secondhand housing market in major cities such as Beijing, Shanghai, Guangzhou, and Shenzhen experienced notable surges in transactions, with the highest sales volumes recorded in recent months.
Analysts attribute this recovery to coordinated policy support, including preferential tax policies introduced in mid-November by cities like Beijing, Shanghai, and Shenzhen. These policies aim to reduce transaction costs for homebuyers, further stabilizing the real estate market.
Urban Renewal and Government-Supported Housing
Looking ahead, experts argue that in order to sustain this recovery, the government should focus on several key strategies:
Expanding Government-Subsidized Housing: Increasing the supply of affordable housing through government subsidies will be crucial for addressing housing affordability issues and supporting low- and middle-income homebuyers.
Urban Village Redevelopment: Accelerating the redevelopment of urban villages will not only enhance the living conditions of residents but also unlock underutilized land for new housing projects.
Improving Living Environments: Addressing evolving preferences for better living environments, including green spaces and more modern facilities, will be essential in meeting the demands of homebuyers in an increasingly urbanized society.
Positive Market Reactions
The housing market’s response to these policy changes is positive. Wen Bin, chief economist at China Minsheng Bank, highlighted that these coordinated efforts are already having a favorable impact, helping to stabilize the market and boost home sales.
Conclusion
Despite signs of recovery, industry analysts suggest that the government should continue to refine and expand its policy measures. The future of China’s real estate market depends on the ability to expand affordable housing options, accelerate urban renewal projects, and meet the evolving needs of homebuyers. With sustained support, the property market is poised for a more balanced and sustainable growth trajectory in the coming years.
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