Old Version
Media Focus

Reviving the Housing Market

NewsChina, Chinese Edition July 4, 2022

By NewsChina Updated Sept.1

China is loosening some restrictive policies on the real estate market, hoping the housing industry can help secure economic growth that was hit hard by the Covid-19 pandemic. The new round of policies consists of housing coupons, an alternative to cash to compensate families relocated from rundown communities undergoing renovation projects, and commodity exchange, from which houses can be partly paid by for by produce, such as garlic or wheat sold to appointed franchisers. Despite the variety of stimulus packages, housing supply still outstrips demand as a consequence of deflation policies imposed on the overheated market in 2021 when property developers, like Evergrande Group, lost access to liquidity. The government allows financial institutions to finance the real estate market, but it does not allow anyone to take advantage of the financing as a means for house speculation as many did when the property market was booming.