A real estate project under construction Monday in Shenyang, Liaoning Province (northeast China). The National Bureau of Statistics said that from January to April, national investment in real estate development amounted to 4.02 trillion yuan ($624 billion), a year-on-year increase of 21.6 percent. Photo: cnsphoto
Huzhou, in east China’s Zhejiang province, said on Tuesday it would encourage state-owned enterprises (SOEs) to purchase apartments from struggling property developers for use as compensation and resettlement housing, according to a published notice. by the local Housing and Urban and Rural Areas Office. Development.
The move could help ease inventory pressure for some property companies. By involving different aspects and capitals, such as state-owned enterprises, it offers a new approach to help solve the current problems facing the real estate sector, as well as a new housing supply model for state-owned enterprises, Yan Yuejin, research director at Shanghai-based E-house China R&D Institute, told the Global Times on Tuesday.
Currently, some property developers are under pressure with their inventory, while some cities have demand for compensation and relocated housing. By linking supply and demand, it could help promote the healthy development of the industry, Yan noted.
Some Chinese cities have encouraged state-owned enterprises to build compensation and resettlement housing in recent years as part of an initiative to promote supply-side structural reform of the housing sector. Typically, houses could be rented at below-market prices to companies’ own employees or new town graduates without housing, and other groups.
China’s housing sector has faced downward pressure as some developers struggle with cash and debt issues. In order to help alleviate the situation, developers and governments have implemented different measures.
Besides encouraging state-owned enterprises to buy apartments, Huzhou also said it would step up efforts to deal with risky projects.
Huizhou in south China’s Guangdong Province has introduced a new policy to lower the minimum down payment for first-time home buyers to 20 percent, bjnews.com.cn reported on Tuesday.
Some developers in central China’s Henan even offered a promotional activity allowing the use of wheat to offset part of the down payment, though this was later canceled, according to media reports.
Property authorities in Sixian County, east China’s Anhui Province, released a document via their official WeChat account on Wednesday to encourage government officials and their families and friends to buy properties, to stabilize the local real estate market.
The document says there are 32 real estate programs operating in the county seat area and homebuyers can benefit from financial support, school access and talent recruitment. While the article has now been deleted by press time.
In July, new home prices in first-tier cities rose 0.3% on a monthly basis, down 0.2 percentage points from the previous month, data from the National Bureau of Housing showed on Monday. statistics (NBS).
With the implementation of many supportive policies, the overall downward trend in the housing sector has eased this year, BES spokesperson Fu Linghui said at a press conference on Monday.