On October 17, the State Council Information Office held a press conference regarding measures to promote the stable and healthy development of the real estate market. Ni Hong, the Minister of Housing and Urban-Rural Development, announced plans to increase the credit scale for “white list” projects to 4 trillion yuan by the end of the year. The city financing coordination mechanism aims to include all eligible real estate projects in the “white list,” ensuring that projects receive the necessary financing to meet their reasonable funding needs.

Minister Ni emphasized the central government’s strong commitment to maintaining a stable and healthy real estate market. During the Politburo meeting on September 26, it was stressed that efforts should be made to halt the market’s decline and promote recovery by controlling new supply, optimizing existing stock, and improving quality. The government will address public concerns and expedite the improvement of land, fiscal, and financial policies to foster a new model for real estate development. Following this, the State Council held an executive meeting on September 29 to outline specific implementation strategies.

He highlighted that the Ministry of Housing and Urban-Rural Development, in collaboration with the Ministry of Finance, the Ministry of Natural Resources, the People’s Bank of China, and the Financial Regulatory Bureau, is guiding local governments to swiftly implement existing policies on stock and new housing projects, utilizing a “combination approach” to stabilize the market.

So, what does this “combination approach” entail? Minister Ni summarized it as four cancellations, four reductions, and two increases.

The four cancellations involve enhancing the autonomy of city governments in regulation, allowing them to adjust or eliminate various housing purchase restrictions based on local conditions. These include lifting purchase limits, sales restrictions, price caps, and distinctions between ordinary and non-ordinary residential standards.

The four reductions aim to decrease costs for homebuyers:
1. Lowering the housing provident fund loan interest rate by 0.25 percentage points.
2. Unifying the minimum down payment ratio for first and second homes to 15%.
3. Decreasing interest rates on existing loans.
4. Reducing taxes and fees for exchanging old homes for new ones.

By executing these existing policies, the goal is to lower the cost of purchasing homes for residents, alleviate repayment pressures, and support both essential and improved housing needs.

As for the two increases, the government plans to implement 1 million new urban village and dilapidated housing renovation projects through a monetization approach. Urban villages often face safety hazards and subpar living conditions, and there is a strong public desire for improvement. Preliminary investigations show that 1.7 million urban village units require renovations across 35 major cities, suggesting significant demand will also exist in other urban areas. Additionally, a survey conducted by the ministry revealed 500,000 units of dilapidated housing in need of reconstruction nationwide. This initiative aims to begin renovations on mature projects as soon as possible, utilizing monetary compensation to allow residents to choose suitable housing that minimizes transitional living situations.

Furthermore, by the end of the year, credit sizes for “white list” projects will be escalated to 4 trillion yuan. The urban real estate financing coordination mechanism will strive to include all eligible projects on the “white list” to ensure funding is available as needed.

Minister Ni indicated that the effects of these policies are already becoming apparent, with notable reductions in the decline of major metrics such as real estate development investment and new home sales. Since late September, there has been a marked increase in first-hand property viewings, visits, and contracts, alongside a continuous rise in second-hand home transactions, signaling positive changes in the market.

He also mentioned media reports regarding intensified policy support across various regions, noting that the real estate markets in first-tier cities are beginning to recover universally. Looking ahead, the Ministry of Housing and Urban-Rural Development will work closely with relevant departments to implement the central government’s decisions thoroughly, ensuring that the benefits of these policies reach the broader public.