Beneficial policies for the people and enterprises, demonstrating responsibility in stabilizing the real estate market | Editorial

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Implementing city-specific and targeted policies effectively can solidly advance the stabilization of the real estate market. During the recently concluded “May Day” holiday, real estate consumption showed strong momentum and great potential, once again proving that a better combination of proactive government measures and an effective market can achieve optimal results.

Before the “May Day” holiday, cities like Shenzhen, Guangzhou, and Tianjin introduced new real estate policies, from relaxing purchase restrictions to increasing housing provident fund loan limits, and even providing home purchase subsidies. These measures comprehensively released favorable policies for real estate consumption, eliciting enthusiastic market responses. Based on data from various institutions and our journalistic investigations, from April 30 to May 5, Shenzhen recorded 829 online signed transactions for commercial housing, an increase of over 60%; in Guangzhou, the daily average visits to new properties reached 8,692 groups, up 30.8%; daily subscriptions totaled 634 units, up 50.1%; and second-hand home subscriptions increased by over 60%. In Tianjin, daily second-hand home transactions ranged between 200 and 300 units, about 30% higher than usual daily transaction volumes, with explosive growth in the second-hand market, which will facilitate the replacement demand and boost new home market transactions.

Since the beginning of this year, local governments have adhered to city-specific and tailored policies, striving to stabilize the real estate market. Many cities have seen a gradual balance in supply and demand, with the market continuing to recover positively. An important methodology is to uphold proactive government action, adopt a gradual and targeted approach, and implement differentiated policies based on city-specific conditions. This involves prescribing the right “medicine” to manage risks and eliminate instability roots, achieving the goal of “one key opens one lock.”

There is a touching saying in the education sector, which is also very applicable to efforts to stabilize the real estate market: “The essence of education is one tree shaking another tree, one cloud pushing another cloud, one soul awakening another soul.” At this critical juncture of persistently targeting efforts and precise actions to stabilize the real estate market, continued joint efforts from governments, enterprises, associations, and consumers are needed. This will enable some cities’ real estate markets to stabilize first, and then promote the overall stability of regional markets.

City governments should formulate housing development plans and annual programs, improve market and security systems, meet various housing consumption needs, promote stock housing storage, and implement the “white list” system for real estate financing. They should establish characteristics and policy response mechanisms for housing consumption data, considering not only rigid and improved demand but also opportunities for revitalizing stock housing driven by residential travel, retirement housing, and even hotel demand from inbound tourism growth. The orderly implementation of measures to control growth, reduce inventory, and optimize supply is especially important, including precise land auction policies that focus on “reducing total volume and optimizing structure,” to guide market stability sentiment and create a stable and favorable business environment.

Enterprises should leverage policies, boost confidence, and boldly develop, abandoning fear and hesitation. They should effectively combine innovative quality housing with consumer sentiment value. Focus on quality housing, excellent services, and new technologies to meet the growing residential needs of different market segments, promoting a leap in housing demand and industry advancement. Building good houses, providing good services—these are the new tracks for the transformation and development of the real estate industry. Only through good design, quality construction, excellent materials, and superior service to address housing pain points, and by improving housing quality across different sizes and price points, can the market, development, and future be secured.

Industry associations and chambers of commerce are the “parents” of enterprises. They should actively respond to central policies, promote policy implementation, and organize industry sales to stimulate market demand. Associations and chambers often have keen insights into the survival status, existing problems, potential risks, and development prospects of their industries, and are familiar with the management levels, technological reserves, and core competitiveness of different enterprises. In guiding enterprises to participate in transformation and upgrading, build quality housing, provide good services, and establish self-discipline mechanisms, associations and chambers should play guiding and leading roles, standardize enterprise development and competition behaviors, and serve enterprises by solving worries, easing difficulties, and doing practical work.

Currently, it is a good time for housing consumption. Whether through policy support or enterprise concessions, the forms may differ, but the essence remains unchanged—using tangible benefits and real money to demonstrate action. The various supportive measures for home purchases have already brought joy to some buyers, energized the market, and unlocked development potential.

We see that the real estate market, cities, and different homebuyers are moving from a “mutual pursuit” stage to a phase of “mutual achievement.” Listening to the voices of every individual, group, and enterprise in the market, understanding their needs, and providing targeted policies and services with dedication and care can open up new horizons for consumption and development, and help cities achieve high-quality growth with sustained momentum.

(This article was published in China Real Estate Daily, May 11, 01 edition. Editor: He Kexin)

On-duty Editorial Committee Member: Fan Yongfeng

Process Editor: Wen Hongmei