Will China's Measures Stabilize the Property Market in 2025?

CGTN Europe

China aims to stabilize its housing market and provide affordable homes, focusing on stabilizing market expectations and encouraging both domestic and foreign investment. The private sector is expected to play a significant role in this process, with incentives for real estate development and efficient use of resources. Dr. Zhou Mi, Senior Research Fellow at the Chinese Academy of International Trade and Economic Cooperation spoke to CGTN Europe.

Transcript

00:00China will continue working towards stabilizing its housing market in the new year.

00:04Policymakers have stepped up efforts to revive the property sector by introducing new measures to encourage home buyers.

00:12Beijing's planning to impose strict controls on the supply of commercial housing,

00:17while increasing affordable housing to support young people and new buyers.

00:21Wu Xiumi is Senior Research Fellow at the Chinese Academy of International Trade and Economic Cooperation.

00:28The real estate is one of the very important industries in China because it's not only

00:34are very important factors for the manufacturing for different kind of contractors but also very

00:41important for the Chinese people because the people are having a lot of input for the houses

00:48and it is also because that in the past maybe decades China's real estate has becoming

00:54one of the important investment targets so a lot of people are trying to look at

00:59what they can gain from that and it has very close relations with the bank systems.

01:05Now the plans include redevelopment of over a million urban homes. Is this going to be enough

01:11though to stabilize the property market in 2025? I don't think it's necessary to trying to make

01:19everything back to the track before because we are not trying to do that. As for the real estate,

01:24the most important thing is that we are going to stabilize the expectation of the market

01:29so we are providing many opportunities for the investors no matter from China's

01:34domestic investors or from foreign investors to invest here and on the other hand we are

01:39trying to support the people with lower and middle income they can have affordable houses

01:46and the third one I think it's also very important for us to address some of the

01:50different demands from some of the high income or high value families they can have a better

01:58and more specifically designed houses for their better lives. It's interesting what you're saying

02:05there about stabilizing expectations because I also want to talk about what's been going on

02:10in the private sector. What's the role of the private sector would you say in reshaping the

02:16property market? I think that they should play an even more important role in this process because

02:23the public investment is only our start. We are trying to introduce some of the incentives for

02:29the real estate development but I mean the market is really important because they are really

02:34able to try to use the different resources including the capital and also how to use the

02:40land more wisely and I think the private sectors are also important for a better employment for

02:48the people and also are some of the innovation based on the digital economy or technologies

02:53and provide the people with low carbon houses with more intelligent equipment or facilitations.

03:02It sounds like what you're saying is that China is becoming more business friendly. What would

03:07you say the medium to long-term vision is for how the public and private spheres can stoke

03:13economic growth? I think they are the main focus for China's sustainable development. We are trying

03:19to use the private sectors to open the market to welcome the investments from different countries

03:28and also they are really important for the innovations because that they are able to be

03:34more sensitive to attract the technology and accumulate different resources. On the other

03:39hand I would also say that the private sector is one of the complementary elements in China's

03:44economies to cope with the state-owned enterprises and trying to make a better use of the resources

03:50and reduce the waste of the resources and make it more efficiently be used.

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