Expectations are mounting that the Chinese government will introduce additional policies to support the struggling property market, as recent measures have failed to sustain a rebound. Analysts suggest that these forthcoming policies could surpass previous initiatives, with potential adjustments extending beyond down payments and purchasing restrictions.
Amid concerns over the slowdown in China’s property market, analysts predict that the government will implement a fresh set of policies to revive the ailing sector. The Securities Daily reports that experts anticipate the introduction of more supportive measures this month, following the sales slump witnessed in April and May. Yan Yuejin, a research director at E-house China Research and Development Institute, suggests that some of these measures could go beyond the scope of previously employed tools.
Recent adjustments in down payment requirements in Suzhou have caught the attention of analysts, who believe they could serve as a model for other cities grappling with similar challenges. The hope is that this change will make it easier for residents to afford housing and, consequently, stimulate demand.
Earlier this month, Bloomberg reported sources privy to the matter indicate that Chinese regulators are actively working on a new basket of measures to address the property market’s woes. The reduction of down payments in select non-core neighborhoods of major cities and the lowering of agent commissions on transactions are among the considerations. Furthermore, restrictions on residential purchases may be further relaxed under the guidance of the State Council. News of potential measures has ignited optimism among market participants, who hope that policy stimulus will invigorate the faltering economic recovery.