Jinan in Shandong province, Tianjin, Chongqing and Zhengzhou city in Henan province all shared their experiences at the meeting after being involved in pilot programmes.
Then on Thursday, the Ministry of Natural Resources issued an official notice on renewing old communities by referencing the experiences of Beijing, Shanghai, Guangzhou and Nanjing.
“The measure aims at deepening examination and assessment, strengthening coordination and policy support, as well as improving the approval process to steadily advance the guidance related to land-use planning,” a departmental statement said.
A report on China’s economic outlook, released on Thursday by Spanish bank BBVA, said “the weak market sentiments of households and enterprises” persist, and the “housing market remains the top priority of the risks”.
“Deflationary environment is not easy to reverse amid deep real estate [market] adjustment,” Dong Jinyue, principal economist at BBVA Research, said in the report. “China’s real estate market remains the primary risk of the economy in 2024.”
China’s real estate sector has become a major pillar of its economy over recent decades, accounting for 25 to 30 per cent of the country’s GDP, according to a report released by French insurance company AXA in May.
“However, more recently … property developers have been slow to produce finished houses … In 2022, real estate developers defaulted on more than 50 billion yuan (US$6.89 billion) worth of bonds,” said Wang Yingrui, an economist of macro research at AXA. “Given the property sector’s significant influence on the economy, this has acted as a drag on broader activity.”
Other measures include moving the lower bound of mortgage rate for homebuyers, setting a 300 billion yuan relending pool, and allowing local governments and state-owned enterprises to buy unsold land and housing from distressed developers.
Read More: Chinese government rushes to shore up struggling property sector with new policies
2024-06-16 02:00:10