China to Continue Housing Market Stabilization in 2025
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China will continue its efforts to stabilize its real estate market and prevent further declines in 2025, according to Reuters, citing a report from China Construction News based on a recent work conference held by the housing regulator. The report detailed the government's plans to address the ongoing challenges in the sector.
The government will focus on several key initiatives, including promoting reforms to the commercial housing sales system and expanding urban village renovation programs beyond the addition of 1 million units. Simultaneously, efforts will be made to strictly control the supply of commercial housing while increasing the supply of affordable housing to meet the needs of a growing population, including young people and migrant workers.
These actions build upon a series of policy measures introduced since September aimed at boosting homebuyer demand. These measures, as outlined by Reuters, include reductions in mortgage rates and minimum down payments, along with tax incentives to reduce the overall cost of housing transactions.
Recent data suggests some positive momentum in the market. The China Construction News report notes that home transactions in October and November saw year-over-year and month-on-month growth for two consecutive months. Additionally, official data revealed that China's home prices fell at their slowest pace in 17 months during November, attributed to the government's revival efforts.
An official from the Central Financial and Economic Affairs Commission recently called for swift adoption of policy measures with a direct impact on stabilizing the real estate market. This includes granting greater autonomy to local governments in purchasing housing stock.