Read: 2398
China has announced plans to expedite the acquisition of unsold residential properties with a view toward utilizing them for public housing purposes, ming to mitigate the ongoing crisis in its real estate sector. Housing Minister Dong Jianguo revealed this initiative during an official briefing held on Friday August 23rd in Beijing.
In conjunction with these efforts, the government is also committed to accelerating the implementation of a new model that places emphasis on rental accommodation and promoting public housing sales when conditions permit. These initiatives come as part of China's broader strategy to shore up its property market which has been experiencing a prolonged downturn, impacting job markets, consumption patterns and household wealth.
The President Xi Jinping announced comprehensive measures last month med at bolstering the fiscal health of local governments while granting them increased autonomy in managing their real estate market. The detls surrounding these plans remn somewhat vague thus far.
China's top leadership is now considering innovative funding mechanisms for local governments to purchase unsold residential properties, following a series of unsuccessful rescue packages inted to prop up the industry. A central bank fund worth 300 billion yuan $55 billion was announced in May as part of these efforts.
In tandem with this initiative, China's leadership is determined to hasten implementation of a new housing framework that prioritizes rental accommodation for younger homebuyers who have been priced out by soaring property prices. In 2017, President Xi Jinping underscored the phrase houses are meant for habitation not speculation as part of China's broader strategy to rein in runaway property costs and promote a rental-focused housing model.
Furthermore, plans include constructing an additional 235 affordable housing units across the country with the intention that they be sold or leased to eligible residents. As part of this plan, discussions are underway regarding acquiring stakes in electric vehicle EV units by China Evergrande Group's liquidators.
China is also considering easing home purchase restrictions in Shangh and Shenzhen as a strategy to invigorate its property market, signaling possible policy shifts towards promoting economic recovery within the region.
This multifaceted approach represents China's ongoing effort to stabilize its real estate sector amidst economic uncertnties.
This article is reproduced from: https://www.businesstimes.com.sg/property/china-vows-accelerate-buying-unsold-homes-public-housing
Please indicate when reprinting from: https://www.ao39.com/Rental_housing_prices/China_Housing_Reform_Strategy_2023.html
Chinas Accelerated Housing Acquisition Plan Rental Accommodation Priority Strategy Local Government Funding Mechanisms Public Housing Sales and Rentals Focus 300 Billion Yuan Central Bank Fund Affordable Housing Units Expansion Program