The real estate market in the Chinese mainland has shown clear signs of stabilization and improvement over the past few months. In April, the market faced challenges with both transaction volumes and property prices, marking the highest unsold housing stock in over a decade.
To counter these challenges, on May 17, the People's Bank of China and other key institutions introduced measures aimed at developing the real estate sector. Further support came on October 17, when the Ministry of Housing and Urban-Rural Development, along with other ministries, enhanced initiatives to promote stable and healthy market growth.
A pivotal meeting held by the Political Bureau of the Central Committee on September 26 emphasized the importance of controlling new housing supply, optimizing existing stock, and improving construction quality. These strategies are crafting a new model for real estate development in the region.
Recent data highlights the market's positive trajectory. Urban land acquisition has surged, with a year-on-year increase of 31.6% and a month-on-month rise of 25.9%. Cities like Guangzhou, Shenzhen, and Chengdu have seen active land auctions, driving transaction volumes to stabilize since October.
The National Day holiday marked a significant uptick in housing purchases, with a 77% month-on-month and 65% year-on-year increase in new projects across 23 key cities. Second-hand housing transactions are also recovering, doubling in key cities like Shenzhen and Hangzhou in October.
New policy relaxations introduced on October 17, such as lifting housing purchase restrictions and eliminating distinctions between property types, are expected to invigorate the market. Additionally, plans to renovate 1 million housing units will aid in destocking and support developers in establishing positive cash flow cycles.
Despite ongoing price adjustments, with significant declines in major cities, this cyclical correction is paving the way for long-term stabilization and potential future growth in the Chinese mainland's real estate market.
Reference(s):
Real estate market stabilizes, showing clear signs of improvement
cgtn.com
