China is stepping up efforts to restore stability in its struggling real estate sector, with plans to implement stronger measures in 2025, according to China Construction News.
The announcement came after a two-day housing regulator conference held earlier this week.
Key priorities for the coming year include reforming the commercial housing sales system and expanding urban village renovation projects to go beyond the initial target of one million new units. The government is also tightening controls on the supply of commercial housing while increasing the availability of affordable homes to ease the housing challenges faced by new residents, young professionals, and migrant workers.
China’s property sector, once a cornerstone of its economic growth, has been in turmoil since a 2021 debt crisis involving heavily leveraged developers. In response, the government has introduced several measures to revive the market and stimulate homebuying. These include slashing mortgage rates, lowering down-payment requirements, and offering tax incentives to make housing transactions more affordable.
Encouraging signs have started to emerge. According to officials at the conference, home sales in October and November showed growth both compared to the previous year and the previous month. Data from November also revealed that housing prices fell at their slowest pace in nearly a year and a half, suggesting that stabilization efforts are beginning to take hold.
An official from the Central Financial and Economic Affairs Commission recently called for more direct action to stabilize the housing market, urging local governments to take greater responsibility. One proposed solution is granting local authorities the flexibility to purchase surplus housing stock, which could help address supply issues while supporting the market’s recovery.
The government’s renewed focus on affordable housing and targeted policies highlights its commitment to addressing the housing needs of China’s population while restoring confidence in one of the country’s most critical sectors.
