China will provide some 2.4 million subsidized rental housing units this year, an official with the country’s top housing regulator said Thursday.
One of the main tasks that the country has set itself is to ensure the stability of the real estate sector and to create an adequate supply of housing to meet demand.
Thus, the reforms will seek to improve the structure of housing supply, Wang Menghui, minister of housing and urban-rural development, told a press conference of the State Council Information Office. .
Regulations must be stable, consistent, precise and coordinated. While maintaining the industry’s long-term mechanism and firm demand, reasonable housing purchase requirements for the improvement of living conditions should be met, so as to promote the healthy development of the industry and a virtuous circle, which will ensure the stability of land and house prices and market expectations, Wang said.
Thanks to the joint efforts of all parties concerned, China’s real estate market has been stable over the past year, with a consensus on the principle that “housing is for living in, not for speculation.”
Some 1.565 billion square meters of gross floor area of commercial housing were traded across the country in 2021, up 1.1 percent year-on-year, said Ni Hong, vice minister of Housing and Urban Development– rural.
Home price growth is slowing. In 2021, the average sale price of new homes increased by 2% and that of second-hand apartments increased by 1% in the country’s 70 large and medium-sized cities, down 1.7 percentage points and 1 .1 percentage point, respectively.
In January, 50 of 70 major cities saw new home prices rise year over year and 39 saw existing home prices rise, according to data compiled by the National Bureau of Statistics.
Investment in real estate development rose 4.4 percent year-on-year to 14.8 trillion yuan ($2.33 trillion) in 2021, with that in the residential segment growing 6.4 percent.
“The stable performance of the real estate market also proved that the long-term mechanism of the real estate market is taking shape,” Ni said.
Real estate cannot be treated as a tool for short-term economic recovery. Local guidelines and measures adapted to local conditions can promote the healthy development of the sector, he said.
“To achieve this, the payment defaults of several real estate developers and the delays in the delivery of real estate projects must be resolved,” Ni said.
This will ensure the orderly delivery of homes to homebuyers, helping to secure people’s livelihoods and maintain stability. The assignment of debts and the delivery of housing will be carried out in accordance with laws and market principles, and will guarantee social stability and the legitimate rights of housing buyers, Ni said.
Zhang Dawei, chief analyst at Centaline Property Agency Ltd, said he was happy to see that the property sector will play an active role in stabilizing the economy.
At the same time, great efforts will be made to increase the supply of subsidized rental housing.
Wang said, “We can build 2.4 million units (apartments or rooms) this year as well as create an additional 100,000 public housing units and renovate 1.2 million old city apartments.”
He also said that the development of the long-term rental housing market will be accelerated.
As many as 942,000 new subsidized rental units became available in 40 Chinese cities last year.
In order to increase the number of new subsidized rental units this year to 2.4 million, the real estate regulator has called for the execution of related measures on land, approval procedures, state subsidies, taxation and favorable royalties, among others.
“I believe that if young people in a city are hopeful, the city itself will be hopeful. This principle applies to China,” Ni said.