China’s Real Estate Market Enters Phase of Transformation, Says Minister of Housing and Urban-Rural Development
In a recent interview, Ni Hong, Minister of the Ministry of Housing and Urban-Rural Development, discussed the current state of China’s real estate market, emphasizing the need for a new model of development to promote stable and healthy growth.
Hong acknowledged that China’s real estate market is currently undergoing a period of transformation, marked by some challenges but with strong support for sustainable development in the future. He stated that building a new model of real estate development is fundamental to addressing current problems and fostering the market’s stability and health.
The meeting of the Political Bureau of the Central Committee of the Communist Party of China on July 24 highlighted the need to adapt to the new situation of major changes in the supply and demand relationship in the country’s real estate market. Hong emphasized the importance of understanding these changes and their implications for the market.
Examining the performance of the real estate market this year, Hong noted that while facing fluctuations, measures such as “recognizing houses but not taking out loans” and “lowering down payment ratios and interest rates” have had positive effects. Transaction volumes of second-hand houses have increased, and the completion area of national housing has risen by nearly 20% year-on-year, demonstrating effective measures taken by local governments to support the market.
Discussing real estate regulation, Hong stressed the need for city-specific policies and precise measures tailored to each city’s unique characteristics. He mentioned the government’s commitment to guiding local officials in implementing the central government’s directives to meet housing demands and promote high-quality development in the real estate market.
Furthermore, Hong outlined the importance of building a new development model that focuses on addressing housing needs, improving housing quality, and establishing sustainable mechanisms for financing and development. He stressed the significance of embracing a new approach that prioritizes quality, new technology, and excellent services to meet the evolving needs of the market and the people.
Describing the recent proposal to accelerate the construction of “three major projects” such as affordable housing, Hong highlighted it as a significant decision and crucial move given the new phase of the real estate market. He underlined the objectives of this reform, including expanding affordable housing options, transforming urban villages, and constructing public infrastructure for both regular and emergency usage to improve urban resilience.
Reflecting on the current state of China’s real estate market, Hong remains optimistic about the future. With the gradual establishment of a new model of real estate development and the ongoing implementation of the central government’s strategies, he is confident that the transformation and upgrading of the real estate market will lead to high-quality development and improved housing for the people.