He Chinese Cabinet It approved guidelines for the planning and construction of affordable housing at a meeting chaired by Premier Li Qiang on Friday, the state news agency Xinhua reported.
China’s real estate sector is experiencing a deepening crisis, with a growing risk of default among some developers, who are struggling to sell apartments and raise funds.
Xinhua did not give details of the new cabinet guidelines, but said it would expand investment and promote healthy development of the real estate market.
Separately, the Central Bank of China announced a series of guidelines to relax lending rules for residential homes, with the aim of boosting loan applications and home purchases.
He People’s Bank of China He said banks should treat those without a home in their name as first-time homebuyers, regardless of whether they’ve previously had a home loan.
The central bank also said it would stick to the principle that houses are for living in and not vehicles for speculation.
In recent years, beijing has pushed for more affordable housing as skyrocketing house prices in big cities have left out many young buyers, a plan that has grown in importance following the housing debt crisis and weakening growth economic.
An official from the Ministry of Housing and Urban and Rural Development stated last year that China will add 6.5 million new low-cost rental homes in 40 large cities in 2021-2025.
However, with housing declining, official data showed new house prices fell in July for the first time this year, underscoring the urgency of bolder policy support.
On Friday, the housing ministry, the central bank and the national financial regulator also jointly published a notice easing mortgage policies to help revive the sector.
Over the past two years, the Chinese housing market has faced a severe debt crisis, initially triggered by government measures to curb rising debt.
The Cabinet also approved plans on Friday to develop the pharmaceutical and medical equipment industries between 2023 and 2025, pledging to expand the country’s supply capacity of high-end medicines and key technologies, according to Xinhua.
Source: Reuters
Source: Gestion
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