China declares its real estate sector has ‘hit rock bottom’ and pledges further support for the struggling industry, including increasing funding to 4 trillion yuan (US$562.18 billion) But despite recent glimmers of hope, sentiment remains cautious.
Housing and Urban-Rural Development Minister Ng Hung, at a ministry press conference on Thursday, pointed to positive trends in home purchase data from this month and emphasized prospects for an all-round recovery.
“The market has bottomed out after three years of correction. In the end, the government will win the tough battle to revive this industry,” Nee said, adding that a joint effort to implement a number of supportive policies is expected. I vowed to make an effort.
Officials from the People’s Bank of China, the Ministry of Finance, and the State Financial Supervisory Administration also attended the briefing.
According to Ni, the Chinese government will expand the loan pool for loan “whitelists” (a set of pre-qualified projects and developers) from 2.23 trillion yuan to 4 trillion yuan by the end of the year, increasing the previous allocation. He said he plans to nearly double the amount.
The minister also said that the country’s urban redevelopment will cover one million housing units and there is scope to build more if the situation requires. Residents of the affected areas will be provided with financial compensation to cover resettlement.
