In an effort to fix the major problems in China’s real estate market, the government has announced a series of important measures on Friday.
These include allowing local governments to purchase some apartments, making it easier for people to get mortgages, and guaranteeing that unfinished housing projects will be completed.
Investors saw the measures as a potential turning point, hoping the government would take stronger action to address the cooling property market. This includes boosting weak demand for existing and new homes, stopping price declines, and dealing with the increasing number of unsold apartments.
China Real Estate Newspaper, a publication managed by the housing ministry, said the “heavyweight policies” marked “a significant historic moment” for the property sector.
The acquired homes will address the need for affordable housing, according to Vice Premier He Lifeng, although specific details regarding the timeline and purchase volume are yet to be announced.
He also said local governments, already some $9 trillion in debt, can repurchase land sold to developers, and promised that authorities will “fight hard” to complete stalled projects.
China’s property market has been in a serious slump since 2021. This downturn has caused many developers to go bankrupt, leaving numerous construction projects unfinished. As a result, people are losing faith in what was traditionally the favorite way for Chinese citizens to invest their money.
New home prices in China continued their downward trend for a tenth straight month in April. The decline of 0.6% compared to the previous month was the steepest drop since late 2014, highlighting the ongoing slump in the property market.this is according to the figures release earlier on Friday .
Meanwhile struggling Chinese developer Country Garden had a hearing in a Hong Kong court over its potential liquidation adjourned to 11 June.
China’s real estate developers have been struggling financially since 2021. This happened after the government cracked down on borrowing by large property companies.
The government’s move in 2021 triggered a wave of defaults among major developers, with the world’s most indebted one, Evergrande, being forced into liquidation by a Hong Kong court in January.
Follow us on:
Gbadebo Rhodes-Vivour has condemned the commercialisation of GMO seeds, warning of threats to Nigeria’s food…
Oleksandr Usyk has secured victory over Tyson Fury in Riyadh, successfully defending his heavyweight championship…
Albania plans a one-year TikTok ban from January after a schoolboy’s death sparks concerns over…
A suspect accused of killing five people by driving into a crowded Christmas market in…
A US Navy F/A-18 Hornet was mistakenly shot down over the Red Sea by the…
NNPC has reduced petrol ex-depot price to N899 per litre, sparking competition with Dangote Refinery…