China's property market heading for solid recovery, healthy development

FOCUS ON PRESSING DEMAND, KEY GROUPS

Highlighting the work of ensuring people's wellbeing as one of the key objectives of the country, this year's government work report has proposed to "improve the housing support system, support people in buying their first homes or improving their housing situation, and help resolve the housing problems of new urban residents and young people."

Demand for first homes and housing improvement is projected to remain high in the coming decade. From 2021 to 2035, first homes with a total floor area of about 3.9 billion square meters will be required, accounting for 18 percent of the total demand for housing, while the need for housing improvement is expected to be around 12 billion square meters, taking up 54 percent of the total demand, according to a report released by the Beike Research Institute.

The country will continue to implement city-specific and targeted policies to vigorously meet the rigid demand for home-owning and housing improvement to increase confidence and promote steady recovery and healthy development of the real estate market, Ni said.

Stressing the importance of the continuous recovery of new housing sales, Dongxing Securities Corporation Limited said policies at both ends of supply and demand are forming a synergy to stabilize the property sector, and market sales are bottoming out.

To solve the difficulties for new city residents and the youth, Ni said measures will be taken to increase the supply of affordable rental housing and the construction of long-term rental housing.

While supporting housing leasing and increasing housing supply, different cities will implement policies according to their specific market and population situations, and formulate standards such as mortgage and purchase restrictions in a differentiated manner to stimulate potential purchasing power, according to Haitong Securities Company Limited.