Guangzhou old and dilapidated small apartments no longer need to be demolished and sold; the government is stepping in to buy them.

Guangzhou Anju Group is purchasing second-hand homes within the third ring road of Guangzhou, under 70 square meters, with a total price within 3 million yuan. This is equivalent to a government guarantee, so people wanting to sell their homes no longer have to sell at low prices for a loss.
This policy is very clever, essentially capping the prices of old and dilapidated second-hand apartments. Stopping the price decline is just the first step; this policy also requires sellers to buy a new home in Guangzhou within 180 days, with subsidies provided, up to 30k yuan.
The government buying second-hand homes as affordable housing effectively reduces the inventory of second-hand homes, and sellers who sell their homes then buy a new one, which further reduces the inventory of new homes—one move reduces two inventories.
Next, Guangzhou’s inventory reduction cycle will be greatly shortened.
Another clever aspect of this move is that sellers also need to put in some money to buy a new home. Buying your second-hand home isn’t meant to cash out and leave.
Most old and dilapidated small apartments are priced around 20k yuan per square meter, with total prices rarely exceeding 2 million yuan.
To buy a new home in a good location in Guangzhou, it would cost at least three to four million yuan, which means adding another one or two million yuan to the market, bringing in new funds.
Currently, the government is very determined to boost the real estate market; if one policy doesn’t work, they will try another, aiming to revive the market.
I still hold the same view as before: all assets have increased in value, the RMB has appreciated, but only houses haven’t risen; water flows to the low places, and houses can’t keep falling forever. #24h加密合约清算破4亿美元