By hannover-web.com On October 17th, during a press briefing in Beijing, Minister of Housing and Urban-Rural Development Ni Hong announced that China’s major cities have seen a comprehensive stabilization in the real estate market since the beginning of October.
Minister Ni elaborated that since late September, various government departments have implemented a series of fiscal and financial policies. Local governments have adopted city-specific strategies, removing or easing restrictive measures to support both essential and upgraded housing needs for residents. He noted that these actions have effectively boosted market confidence.
He observed a significant increase in property viewings and visits across many cities and projects, with sales showing varying degrees of growth. Key indicators for real estate are clearly improving, especially in first-tier cities, where the market has stabilized consistently since October started.
Thanks to these policy interventions, Minister Ni indicated that after three years of adjustments, the Chinese real estate market appears to be bottoming out. He predicts that the data for October will reflect a positive outlook. Moving forward, he emphasized the importance of collaboration to implement these policies effectively, ensuring that the benefits reach the public. “We are confident that the real estate market will halt its decline and stabilize,” he stated.
Research from the Ke Yi Rui Center indicates that in the first two weeks of October, new home transactions showed signs of recovery. In 30 key cities, new home sales in the first 13 days of October increased by 27% compared to the same period in September. First-tier cities reported a 29% increase over September, and a 14% increase compared to the first 13 days of October last year. The transaction volume of second-hand homes also rose week by week, with 14 cities in the second week of October seeing sales double compared to the previous week, and cities like Shenzhen and Hangzhou reaching unprecedented weekly sales this year.
Addressing concerns about the potential “siphoning effect” from relaxed purchase restrictions in first-tier cities, Minister Ni explained that such effects are common in urban development worldwide. He noted that the impact of this “siphoning effect” varies across different cities and stages of development. The Chinese government is focused on promoting coordinated development among large, medium, and small cities and towns. Implementing city-specific policies in the real estate sector is a strategic measure to mitigate the negative impacts of any “siphoning effect.”
