Beijing, [Date] — China’s recent announcement of a series of far-reaching measures for the real estate sector has been lauded by experts as a historic move poised to invigorate the housing market and promote sustainable industry growth.
The comprehensive policies unveiled on Friday include reducing minimum down payment ratios, lowering loan rates for the individual housing provident fund, abolishing mortgage floor rates, and empowering local authorities to purchase homes at reasonable prices to expand affordable housing options.
Dong Ximiao, chief researcher at Merchants Union Consumer Finance Co Ltd, emphasized that the significant adjustment in financial policies for the property market surpasses market expectations. In an interview with Economic Daily, Dong stated, “These measures send a clear signal of stabilizing the real estate market. They will help bolster confidence in the housing sector and enhance residents’ willingness and ability to invest in housing.”
Analysts believe that the policy shift demonstrates the government’s commitment to ensuring the healthy development of the real estate market, which is a crucial component of China’s economy. By easing financial pressures on homebuyers and supporting affordable housing initiatives, the new measures aim to stimulate demand and address housing affordability concerns.
Li Yujia, a senior researcher at the Guangdong Housing Policy Research Center, noted that lowering down payment requirements and mortgage rates will make home ownership more accessible to a broader segment of the population. “This policy adjustment is expected to unleash suppressed housing demand, especially among first-time buyers and upgraders,” Li said.
The move also allows local governments greater flexibility to tailor policies to their regional markets, enabling a more targeted approach to addressing local housing challenges. By purchasing homes to provide affordable housing, local authorities can help balance supply and demand while promoting social welfare.
International investors and market analysts are closely watching the impact of these measures on China’s property market. The sector’s revitalization is anticipated to have positive ripple effects on related industries, contributing to overall economic stability and growth.
As China continues to navigate the complexities of its real estate market, these historic policies represent a significant step toward fostering a more resilient and sustainable housing sector that meets the needs of its population.
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China's 'historic' real estate policies to boost sector: Experts
cgtn.com
