Government officials of major cities in China have announced plans to implement new measures aimed at stabilizing home prices and promoting housing rentals. The mandate from the state council has managed to trickle down to the local level, with governments now taking accelerated action to further improve the public's standard of living.
In various 2020 government work reports, provincial-level regions have repeatedly emphasized the importance of stable and healthy development within their respective real estate markets. This has become apparent in the string of new plans and measures that are aimed at hitting various goals for the year.
In Shanghai, government officials revealed plans of putting up to 100,000 new apartments for leasing into the city's real estate market. The added properties are expected to keep land and home prices steady throughout the year. In Beijing, the government revealed plans of accelerating efforts to increase the supply of rental housing using collective lands located in major train stations and industrial parks.
In China's Ningxia Hui autonomous region, officials announced that they will be encouraging the establishment of new homes so that low to middle-income families can have the option to upgrade their living conditions at very minimal added cost. Meanwhile, Hainan province officials have outlined plans to covert land intended for commercial housing to rental housing projects.
Other regions have announced similar measures including the redevelopment of old residential communities. This will include the installation of upgrades such as elevators and improved piping networks. Some plans also outline the provision of firefighting equipment and better facilities for existing residents.
The plans laid out by the local level governments are part of the "housing is for living, not for speculation" principle outlined by the central government during the recently held Central Economic Work Conference. This will coincide with plans to implement new regulatory mechanisms and long-term management for the real estate sector for 2020.
China had also explicitly stated that real estate should not be used as a short-term stimulus solution to boost economic growth. Instead, any new measures should be aimed at improving the lives of ordinary citizens throughout the country. This was clearly detailed during the national work conference for housing and urban-rural development last month.
Analysts have pointed out that the government's plan to encourage collective land rental housing and the establishment of rental apartments should strengthen the property market as a whole; allowing it to deal with future challenges that lie ahead.