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Minister of Housing and Urban-Rural Development Ni Hong said
during a news conference Thursday in Beijing that measures will
also be taken to redevelop 1 million urban villages across the
country. Ni stopped short of elaborating on the scale of the
funding for the redevelopment.
He said that the housing market had “bottomed out” after three
years, with October data showing a spike in property sales.
The government has been redoubling efforts in recent weeks to
stabilize the real estate market after a downturn triggered by a
crackdown on excess borrowing. Once a bright spot in China’s
economy, the property market has since become a drag.
On Saturday, authorities announced that they would allow local
governments to use funds from unallocated government bond quotas
and to raise debt ceilings to help prop up the property market.
In late September, the outstanding mortgage rates for individual
borrowers were also cut by an average of 0.5 percentage points,
and the minimum down payment ratio on purchases of second homes
was also lowered to 15% from 25%.
In January, officials announced a list of housing projects that
would be eligible for financing. Loans for such projects had
reached 2.23 trillion yuan ($313 billion) as of Wednesday, said
Xiao Yuanqi, deputy director of the National Financial
Regulatory Administration.
Some analysts however say that measures implemented so far will
not be enough to solve China's property crisis in the near term.
“It’s a ticking time bomb that will take years, maybe even
decades, to defuse,” said Stephen Innes, managing partner at SPI
Asset Management. “No matter how much money or effort they throw
at it, this problem isn’t going away anytime soon.”
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