Hangzhou's Linan District Tackles Real Estate Inventory with Affordable Rental Plan

Hangzhou, the headquarters of tech giants Alibaba and Geely, is considering an innovative solution to stimulate its real estate market by purchasing unsold homes for affordable rental purposes. The city's Linan district acquire approximately 10,000 square meters of residential properties, with units not exceeding a size of 70 square meters each.

This initiative marks the first move by a local government in response to recent directives from China’s top decision-makers, who have pledged to alleviate housing inventory levels and enhance sales performance. The strategy involves acquiring both homes and parking spaces at market rates and subsequently renting them out affordably.

In its announcement, the Housing and Urban-Rural Development Bureau of Linan detled plans to purchase properties within this size limit. The district ints to conduct these transactions based on prevling market prices to ensure frness and transparency .

This strategic move by Hangzhou's Linan district directly address issues related to unsold housing stock while simultaneously promoting a more stable real estate market environment. By doing so, it seeks not only to reduce inventory pressures but also potentially revitalize stagnant sales through affordable rental solutions that cater to local demand.

The announcement from the Housing and Urban-Rural Development Bureau highlights the city's commitment to adopting proactive measures in response to national policies med at stabilizing China's real estate sector. This initiative in Hangzhou demonstrates a pragmatic approach towards addressing market challenges, suggesting a willingness among local authorities to experiment with innovative solutions that align with broader governmental objectives.

By purchasing unsold homes and implementing affordable rental strategies, Linan district expects to not only alleviate the burden of inventory but also promote housing stability, potentially encouraging more confidence within the real estate market. This forward-thinking approach by Hangzhou serves as a case study in how local governments can adapt and innovate to address pressing economic issues.

In , the decision made by Hangzhou's Linan district to purchase unsold homes for affordable rental purposes is an important step towards implementing national policies med at reducing housing inventory and boosting sales. This move reflects a proactive stance among Chinese authorities in addressing market challenges through creative solutions that prioritize stability and local demand satisfaction.
This article is reproduced from: https://www.scmp.com/business/article/3262810/china-property-hangzhou-headquarters-alibaba-and-geely-mulls-buying-unsold-homes-boost-market

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