By love-89.com During a news conference held by the State Council Information Office on October 17, officials from various departments including the Ministry of Housing and Urban-Rural Development, the Ministry of Finance, the Ministry of Natural Resources, the People’s Bank of China, and the National Financial Regulatory Administration provided insights into their efforts to promote a stable and healthy development of the real estate market.
Currently, the Ministry of Housing and Urban-Rural Development, in collaboration with the Ministry of Finance, the Ministry of Natural Resources, the People’s Bank of China, and the Financial Regulatory Administration, is guiding local governments to take swift action. They are focusing on implementing existing policies while also introducing new measures aimed at stabilizing the market. This includes granting urban governments more autonomy in policy-making, tailoring strategies to local conditions, adjusting or removing various housing purchase restrictions, and lowering interest rates on housing provident fund loans. Additionally, they are working on reducing down payment ratios, lowering interest rates on existing loans, and cutting the tax burdens for those looking to sell their old homes and buy new ones.
Ni Hong, an official involved in these initiatives, stated that the next steps will involve the introduction of 1 million housing units through the renovation of urban villages and dilapidated buildings, facilitated by monetized resettlement methods. By the end of the year, they aim to increase the credit scale for “white list” projects to 4 trillion yuan.
Further clarifications from the Financial Regulatory Administration emphasized their commitment to optimizing the financing mechanisms for real estate “white list” projects. They want to ensure that qualifying projects are fully funded, that approved loans are disbursed in full, and that funds are allocated as quickly as possible.
When it comes to supporting local governments in utilizing special bonds to purchase existing housing for affordable housing purposes, the Ministry of Finance noted that this policy is largely up to local discretion and should adhere to legal and market principles.
Regarding the management of idle land, the Ministry of Natural Resources mentioned a dual approach involving controls on new supply while actively utilizing existing land. In cities with prolonged inventory turnover periods, the supply of residential land will be halted, and land supply will be adjusted according to absorption rates.
Additionally, concerning the issue of reducing rates on existing home loans, the People’s Bank of China projected that most adjustments would take place by October 25, with some smaller banks completing their adjustments slightly later. They anticipate that all modifications will be finalized by October 31.