In 2024, China's real estate market began to recover steadily, signaling a positive shift in the nation's housing sector. The Chinese government upheld the principle that \"housing is for living in, not for speculation,\" implementing targeted and precise policies tailored to local conditions.
On May 17 and October 17, new measures were introduced to stimulate the market, including cutting minimum down payment ratios, lowering mortgage rates, and optimizing housing provident fund policies. These initiatives significantly encouraged home purchases and increased investment in affordable rental housing, addressing the diverse housing needs of various groups and stabilizing market expectations.
At the Central Economic Work Conference held on December 11-12, it was emphasized that renovating shanty towns and dilapidated houses is essential. The conference also highlighted the importance of reasonably controlling the supply of newly added real estate land, making good use of existing land and commercial properties, and advancing the disposal of existing commodity housing.
As a result of these efforts, the supply and demand relationship in the real estate market gradually balanced, and housing prices remained relatively stable. According to China Real Estate Information Corp., in December, the national transaction area of commodity housing in 30 key cities reached 18.01 million square meters, marking a 15 percent month-on-month increase and a 17 percent year-on-year growth. The transaction volume also rose by 2 percent compared to December 2022, achieving the highest level for the same period in nearly three years.
Furthermore, data from the China Index Academy revealed that in December 2024, the average price of newly built residential properties across 100 Chinese cities was 16,654 yuan (approximately $2,281) per square meter, reflecting a 0.37 percent month-on-month increase and a 2.68 percent year-on-year growth.
Reference(s):
China real estate market recovers, policy adjustments deliver results
cgtn.com
