Sunday, October 1, 2023
HomeEconomyChina plans new property market support plan to boost economy - Bloomberg

China plans new property market support plan to boost economy – Bloomberg

BEIJING/HONG KONG (Reuters) – China is drawing up new measures to support the property market after existing policies failed to sustain a rebound in the sector, Bloomberg reported on Friday, citing people familiar with the matter.

Under the guidance of the State Council, regulators are considering reducing down payments in some non-core neighborhoods in major cities, lowering agency transaction commissions and further relaxing restrictions on residential purchases, Bloomberg reported.

The State Department did not immediately respond to a Reuters request for comment.

The real estate sector, once a mainstay of economic growth, slumped last year as developers defaulted on debt or bonds and pre-sold housing projects halted construction.

The housing market was further boosted by the lifting of tough COVID restrictions in December, as policymakers introduced measures to stabilize the housing market in the second half of the 23.

However, demand remained sluggish, with real estate investment and sales falling in April as consumers cautious about big spending lost steam as consumers fretted about post-pandemic incomes and jobs.

The central bank outlined policy support measures in November, including moratoriums on loan repayments.

The Housing Authority issued a notice in May requiring local real estate agents to reduce fees for housing transactions and leasing services in order to promote the healthy development of the industry.

UBS said that several second-tier cities have recently announced stimulus measures targeting the property market, and it is increasingly expected that other cities will follow suit in the coming days.

Meanwhile, Chinese property stocks surged on Friday on hopes of further stimulus.

Hang Seng Mainland Property Index rose 9.2% on Friday, outperforming the broader market Hang Seng Index 4% increase.

Large developer Longfor jumped .2%, while smaller peer KWG surged 23.3% .

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