In a recent government notice, China has urged cities and local governments to prevent property market fluctuations with balanced plans of housing supply and demand, and to craft yearly housing development plans for 2024 and 2025.
The Ministry of Housing and Urban-Rural Development issued a notice on Tuesday, asking all cities to assess local housing demands, craft yearly housing development plans based on their demographic and market changes, reflecting a proactive approach to addressing the challenges faced by the real estate sector.
Cities are encouraged to assess local residential housing demands accurately, preventing ups and downs in the property market.
Central to the notice is the annual housing development plans from 2024 to 2030. The plans are expected to specify property supply, structure, and location of housing and land, along with a reasonable estimation of the financing needs for local developers. A detailed approach to affordable housing supply is also underscored, with the aim to foster a balanced and healthy real estate market.
Highlighting the importance of the development plans, the notice requires cities integrate factors such as economic growth, demographic change and industry distribution into mapping their housing strategies.
The ministry places a strong emphasis on affordable housing supply, combining governmental support for basic housing needs with market-driven solutions for varied residential preferences. Cities are urged to accurately study local housing demands.
Local governments are also urged to prioritize the integration of housing development plans with their land use planning, ensuring a cohesive approach to overall urban development.
In 2024, China introduced multiple measures to stabilize its real estate sector and boost the industry's growth. With the establishment of real estate financing coordination mechanisms in 214 cities of 29 provinces, local governments now play a pivotal role in recommending projects for financial support, facilitating over 160 billion yuan ($22.2 billion) in credit to real estate projects under the initiative, according to official data.
