Catch up – Further supportive measures in store for China housing sector in 2025

China Construction News with the report, citing a work conference held by the housing regulator on Tuesday and Wednesday.

In summary from the report, overblown adjectives included …

• Efforts to stabilize and prevent further declines in China’s real estate market will continue into 2025.

• Plans to reform the commercial housing sales system vigorously.
• Expansion of urban village renovations beyond the addition of 1 million units.

• Strict control over the supply of commercial housing.
• Increased focus on providing affordable housing for new citizens, young people, and migrant workers.
• Greater autonomy for local governments to purchase housing stock for stability, as suggested by the Central Financial and Economic Affairs Commission.

The background to the latest proposals here include:

• Policymakers introduced new measures since 2021 to revive the sector after a developer crisis triggered by a government-led crackdown.
• Measures include cutting mortgage rates, reducing minimum down payments, and offering tax incentives to lower housing transaction costs.

The current overview of the sector highlights some encouraging signs … but its early days yet:

• Real estate market shows signs of stabilizing, with year-on-year and month-on-month growth in home transactions during October and November.
• November saw the slowest decline in home prices in 17 months, driven by government efforts.

This article was written by Eamonn Sheridan at www.forexlive.com.