In recent days, the Chinese mainland’s major cities—including Shanghai, Shenzhen, Guangzhou, and the nation’s capital, Beijing—have introduced significant real estate policies aimed at stabilizing and stimulating the nation’s property market.
On September 30, six municipal departments in Beijing jointly issued a circular outlining measures such as lowering the minimum down payment ratio for individual commercial mortgages and easing property purchasing restrictions. These adjustments are expected to have a strong signaling effect, potentially leading to a rebound in the real estate market and a resurgence of the traditionally robust “silver October” sales period.
Earlier, on September 24, the People’s Bank of China (PBC), the nation’s central bank, implemented a series of measures to boost public confidence in the housing market. These included guiding commercial banks to reduce existing mortgage rates and optimizing relending policies to support the sector.
Just days later, on September 26, the Political Bureau of the Communist Party of China (CPC) Central Committee held a meeting to further coordinate the country’s economic efforts. The meeting emphasized actions “to stabilize the property market and reverse its downturn,” urged the improvement of “land, fiscal, tax, and financial policies,” and encouraged the promotion of “the establishment of a new model for real estate development.”
The relaxation or removal of purchase restrictions in these first-tier cities is seen as a strategic move to invigorate the property market. By lowering entry barriers and reducing financial burdens for potential buyers, authorities aim to stimulate demand and foster sustainable growth within the sector.
These combined efforts reflect the government’s commitment to maintaining economic stability and addressing challenges within the real estate market. As the property sector plays a crucial role in China’s economic landscape, these policy adjustments are anticipated to have significant impacts on both domestic and international investors, as well as the broader Asian economy.
Reference(s):
Reviving stability: Key policies for China's real estate market
cgtn.com
