China is taking big steps to cool down its booming real estate market. As of April 2024, commercial housing for sale hit a record 746 million square meters, surpassing the previous peak from over a decade ago. 🏢📈
On April 30, top officials from the Communist Party of China (CPC) Central Committee announced new measures to reduce housing stock and enhance the quality of new developments. These policies aim to build a new model for real estate growth and ensure high-quality progress in the sector.
Following this, on May 17, the People's Bank of China and the National Financial Regulatory Administration unveiled a suite of policy measures. Highlights include:
A 300-billion-yuan re-lending facility for government-subsidized housing 🏘️
Lower minimum down payment ratios for individual mortgages 💰
Removal of the lower limit on mortgage rates 🔽
A 0.25 percentage point reduction in housing provident fund loan rates 📉
These initiatives are already showing positive effects in some cities, helping real estate developers manage cash flows better and injecting fresh momentum into the economy. In the long run, the policies aim to create a more balanced housing supply system and support rural migrant workers in becoming new urban residents. 🌆🚀
