At a recent press conference held by the State Council Information Office, officials from five departments, including the Ministry of Housing and Urban-Rural Development, elaborated on China’s comprehensive measures to stabilize the real estate market. Here are the main takeaways from the event.

First, the “stabilizing the real estate market” strategy encompasses three key components. Ni Hong, the Minister of Housing and Urban-Rural Development, outlined the core elements of the policy package. This includes four cancellations, four reductions, and two expansions.

The four cancellations involve cities tailoring policies to local circumstances by adjusting or removing various purchasing restrictions. Notably, this includes the elimination of purchase limits, sale restrictions, price caps, and distinctions between ordinary and non-ordinary residential standards. Since the end of September, major cities such as Beijing, Shanghai, Guangzhou, and Shenzhen, along with key second-tier cities like Tianjin, Chengdu, and Hangzhou, have implemented related policies to relax these restrictions.

The four reductions focus on lowering costs for home buyers: decreasing the interest rates on housing provident fund loans, reducing down payment ratios for home loans, lowering existing mortgage interest rates, and cutting tax burdens for homeowners looking to upgrade. On the same day, Tao Ling, Deputy Governor of the People’s Bank of China, reported that the bulk of existing mortgage adjustments would be completed by October 25, with some smaller banks finalizing adjustments by October 31.

As for the two expansions, these new initiatives aim to stimulate the market. The first involves the implementation of one million new housing units through urban village renovations and the upgrading of dilapidated properties, which could create substantial housing demand and help absorb excess inventory. The second expansion aims to double the credit limit for “white list” projects to 4 trillion yuan by year-end, ensuring all qualified projects receive funding promptly.

Second, several policies aim to improve the supply-demand relationship in the housing market. In addition to immediate measures to boost market activity, the conference also highlighted long-term strategies, such as supporting local governments in acquiring excess housing inventory and revitalizing idle land.

Chen Wenjing, a policy research director at the China Index Academy, noted that in the fourth quarter, a bundle of supportive policies is expected to be swiftly implemented. Existing policies will accelerate, including the removal of non-ordinary residential classifications and the optimization of tax policies. Local state-owned enterprises are also likely to facilitate transactions, while efforts to mobilize idle land could be expedited. More new policies are anticipated, particularly in core cities where local authorities may further relax restrictions and implement measures to boost demand, such as increasing home purchase subsidies and reducing transaction taxes.

Li Yujia, chief researcher at the Guangdong Urban Planning Institute, highlighted the significance of the combined policy approach, which enhances consistency across departments. For instance, he pointed out the importance of special bonds for reclaiming idle land, requiring natural resource departments to improve their identification and recovery processes while controlling costs and assessing local governments’ hidden debts.

Finally, officials expressed optimism that the real estate market has begun to stabilize. Ni Hong observed a noticeable increase in property viewings and sales across many cities, with significant improvements in key indicators, especially in first-tier cities where the market has shown consistent recovery since October.

Market data supports this outlook. According to the China Real Estate Information Corporation, the area of newly purchased homes in 23 key cities surged during the National Day holiday, with an increase of 77% month-over-month and 65% year-over-year. First-tier cities saw a 102% year-over-year growth, while second- and third-tier cities experienced a 55% increase. Additionally, second-hand home transactions have rebounded weekly, with major cities like Shenzhen and Hangzhou reaching new weekly sales highs for the year.

Ni Hong stated that following three years of adjustments, the Chinese real estate market is now beginning to find its footing. He expressed confidence that October data would reflect a positive trend and affirmed his belief in the market’s stabilization.