In 2024, the Chinese mainland’s real estate market began showing significant signs of recovery. The government’s commitment to the principle that “housing is for living in, not for speculation” led to the implementation of targeted policies tailored to local conditions.
On May 17 and October 17, new measures were introduced to stimulate the market. These included cutting minimum down payment ratios, lowering mortgage rates, and optimizing housing provident fund policies. Such initiatives greatly incentivized people to purchase homes and boosted investment in affordable rental housing, catering to the diverse housing needs of various groups and stabilizing market expectations.
At the Central Economic Work Conference held on December 11-12, it was proposed to advance the renovation of urban shanty towns and dilapidated houses. The conference emphasized unleashing the potential demand of first-time homebuyers and those looking to improve their housing conditions. Plans were announced to reasonably control the supply of new real estate land, make effective use of existing land resources and commercial properties, and advance the disposal of existing commodity housing.
As a result of these policy adjustments, the supply and demand in the real estate market gradually balanced, and housing prices remained relatively stable.
According to data from 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 month-on-month increase of 15 percent and a year-on-year growth of 17 percent. The transaction volume also rose by 2 percent compared to December 2022, achieving the highest level for the same period in nearly three years.
Additionally, the China Index Academy reported that in December 2024, the average price of newly built residential properties across 100 Chinese cities was 16,654 yuan (about $2,281) per square meter, reflecting a 0.37 percent increase month on month and a 2.68 percent growth year on year.
Reference(s):
China real estate market recovers, policy adjustments deliver results
cgtn.com
