As the real estate market showed signs of recovery in the first quarter of 2023, concerns arose as the second quarter failed to sustain the positive trend. In light of this, China Securities Journal and Securities Times highlight that experts have emphasized the need for additional policy measures to maintain the momentum of Chinese real estate market recovery. Among the proposed measures, lowering the down-payment ratio and loan rate on home purchases continues to be a priority, with expectations of rational optimization of policies in core first- and second-tier cities.
In recent weeks, several cities have taken steps to stabilize their property markets, gradually easing loan restrictions and sales limitations. On June 28, the Guangzhou Housing Provident Fund Management Center issued a notice implementing support policies for families with two children or more. Under this policy, families meeting the criteria are eligible for increased housing provident fund loans, allowing them to purchase their first self-occupied housing with a 30% higher loan amount.
Similarly, Lianyungang City in Jiangsu Province introduced nine measures aimed at optimizing real estate policies, including the reduction of the down payment ratio for the first set of provident fund loans from 30% to 20%, extended time limits for paying land transfer fees, and continued housing subsidies.
Other cities such as Yangzhou in Jiangsu Province and Fuqing City in Fujian Province have also made adjustments to their housing policies. Starting July 1, Yangzhou City announced the lifting of purchase restrictions for improved housing in the urban area, and the sales restriction policy will no longer apply to the original housing for a period of one year. Additionally, Fuqing City became the first city this year to cancel the restriction on housing sales for newly purchased commercial housing.
According to the China Finger Research Institute, local governments have issued over 300 real estate control policies since 2023, with approximately 20 cities, including Jinan, Changsha, and Xiamen, relaxing their purchase restriction policies.
According to state media, Wang Xiaoqiang, chief analyst at Zhuge Data Research Center, noted that the overall sales indicators have displayed a downward trend, indicating continued pressure on the market’s recovery. Wang emphasized the need for favorable policies to boost market confidence. Chen Wenjing, director of market research at the China Finger Research Institute, highlighted several factors restricting the current real estate market recovery, including macroeconomic pressures, stagnant income expectations, concerns about a decline in housing prices, and apprehensions regarding unfinished projects and debt repayment issues faced by real estate companies.
Earlier this week, ministry-backed China Construction News noted that Housing Minister Ni Hong said in a meeting with Ge Haijiao, chairman of Bank of China, that banks need to step up financing support to ensure property delivery.
