China vows city-specific fixes to clear housing glut, stabilise property sector
Housing minister pledges to empower local governments to buy unsold inventory and shift towards selling only finished homes with a ‘what you see is what you get’ model
China has pledged to empower local governments with city-specific measures to clear housing gluts and optimise supply next year, ramping up efforts to stabilise a real estate market that remains a persistent drag on the world’s second-largest economy.
“Municipal governments should fully utilise their autonomy in regulating the property market, adjusting and optimising policies as appropriate,” said Ni Hong, the minister of housing and urban-rural development, at a two-day work conference that ended on Tuesday.
While risk prevention remains the priority, the meeting served to emphasise that real estate “still has considerable development potential”, given the rising rate of urbanisation and people’s expectations for “quality homes”, according to an official readout.
To mitigate delivery risks in commercial housing, the ministry is pushing for a shift towards selling completed homes in a “what you see is what you get” model.
For projects that continue to operate on the traditional presales model – a key amplifier of the property crisis – Ni called for stricter oversight of funds to ensure that homebuyers’ rights are protected.
Authorities also pledged to support local governments in purchasing existing commercial housing for use as affordable units, resettlement housing and dormitories.
The ministry also declared that it had “fully accomplished” its campaign – enacted in 2022 – to revive stalled real estate projects and deliver new units in a timely manner.