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Chinese authorities are ramping up efforts to resume stalled property projects and ensure housing delivery and the government is defusing market risks, said Wang Shengjun, spokesperson of the Ministry of Housing and Urban-Rural Development, at a press conference on Wednesday.
The ministry, together with the Ministry of Finance and the People’s Bank of China (PBOC), has launched special measures to support cities in need of promoting the construction and delivery of stalled residential projects by rolling out special loans offered by the country’s policy banks, Wang said.
“Currently, the task is being carried out in an intense and orderly manner,” he added.
Special loans offered by policy banks reassure all participants in the market, which has had a positive effect on addressing the stalled housing projects and preventing the occurrence of real estate-linked financial risks, Yan Yuejin, director of the Shanghai-based E-house China Research and Development Institute.a
Home buyers in hundreds of Chinese cities have refused to pay mortgages as the properties they purchased have been left unfinished amid the liquidity crunch in the real estate sector. Read more …
Xu Jiayin, chairman of cash-strapped property giant China Evergrande Group, said on Monday that the company has 706 construction projects in China, of which 668 have resumed construction and 38 have not. The company has required full resumption of all projects before September 30, according to the company’s official WeChat account.
To stabilize residential property markets, different cities in China are taking measures to guarantee housing deliveries to home buyers.
On September 6, the city of Zhengzhou, capital of central China’s Henan province, vowed to start building all stalled housing projects within 30 days using special loans. Read more …
On July 28, a meeting of the Political Bureau of the CPC Central Committee, held to analyze the current economic situation and arrange economic work for the second half of the year, called for work to ensure the real estate market remain stable, adhering to the principle that “houses are for living, not for speculation”.
Support will be offered to meet the inelastic and upgraded demand for housing, ensure the completion of housing under construction, and guarantee people’s livelihood, the meeting said.
So far, at least 10 cities including Nanning, Huzhou and Shaoxing have introduced policies such as bailout funds to stabilize local property market and boost market confidence, according to China Real Estate Information Corporation. Zhengzhou city in August announced a real estate fund worth 10 billion yuan ($1.47 billion) to facilitate stalled housing construction. Read more …