China Boosts Property Market with $562 Billion in Credit and Housing Renovations
China unveils a major support package to inject $562 billion into the property market and renovate a million homes, aiming to revive economic growth and address housing issues.
Property MarketChinaEconomic GrowthHousing RenovationsCredit BoostReal Estate NewsOct 23, 2024
The property sector has historically been a cornerstone of China's economy, contributing about a quarter of the GDP. However, a prolonged housing slump has hampered economic growth, prompting the government to take action. At a press briefing, Housing Minister Ni Hong detailed the plans to expand the credit scale for white-listed projects to four trillion yuan ($562 billion) by the end of the year. The white-list scheme, introduced earlier this year, encourages local authorities to identify and financially support essential housing projects, working with banks to ensure their completion.
Minister Ni emphasized the importance of the urban real estate financing coordination mechanism, which aims to include all eligible real estate projects in the white-list. Additionally, the government plans to renovate one million rundown homes, addressing safety concerns and poor living conditions in urban villages. Residences in these areas have been eagerly awaiting these improvements, which will also help absorb the existing supply of commercial housing.
Frequently Asked Questions
How much credit is China providing to the property market?
China is providing a credit boost of four trillion yuan, which is approximately $562 billion, to support the property market.
What is the white-list scheme, and how does it work?
The white-list scheme encourages local authorities to identify and financially support essential housing projects, working with banks to ensure their completion. It aims to include all eligible real estate projects in the white-list.
How many homes will be renovated under the new initiative?
The new initiative plans to renovate one million rundown homes, addressing safety concerns and poor living conditions in urban villages.
What is the predicted economic growth for 2024 in China?
Analysts surveyed by AFP predict an overall growth of 4.9 percent in 2024, which is worse than the previous year's performance.
What other measures has China taken to stimulate the economy?
China has implemented several measures, including interest rate reductions, the easing of home-buying restrictions, and efforts to increase liquidity for banks to facilitate lending.
Related News Articles
Indian Realty Giants Unload Properties Worth Rs 1.17 Lakh Crore in FY24
Leading real estate companies in India, such as Macrotech Developers and Signature Global, have sold properties worth a staggering Rs 1.17 lakh crore in FY24.
Soaring Demand Drives Up Property Prices in Delhi-NCR and MMR
Average housing prices in Delhi-NCR and Mumbai Metropolitan Region (MMR) have risen by nearly 50% in the last five years, driven by higher demand and infrastructural developments.
Aditya Birla Real Estate: Pune Launch on the Cards, Expanding in Thane and Sarjapur
In a recent post-earnings call, the management of Aditya Birla Real Estate Ltd, formerly known as Century Textiles and Industries Ltd, announced the upcoming launch of a new project in Pune, along with plans to expand in Thane and Sarjapur.
ACRES 2025 Showcases Over 400 Property Projects in Egypt Pavilion
Organised by the Sharjah Chamber of Commerce and Industry (SCCI) in collaboration with the Sharjah Real Estate Registration Department (SRERD), the ACRES 2025 event is set to feature an extensive array of property projects from Egypt, highlighting the cou
The 23-Year Journey: How a UP Man Purchased Dawood Ibrahim’s Mumbai Shop
Hemant Jain took a significant risk in 2001 by purchasing a Mumbai shop linked to Dawood Ibrahim. Despite numerous bureaucratic obstacles, he finally managed to register the property after a grueling 23-year battle.
What Are the Top 20 Expectations for the Budget 2025-26?
As the Union Budget 2025-26 approaches, scheduled to be presented by Finance Minister Nirmala Sitharaman on February 1 (Saturday), the real estate industry and other sectors are bracing for significant changes and potential boosts. Here’s a detailed look