Ministry of Housing and Urban-Rural Development Issues Latest Statement, Emphasizing Stronger Measures to Stabilize the Real Estate Market

According to a report released by Xinhua News Agency on Friday, a delegation from the Ministry of Housing and Urban-Rural Development recently conducted field research in Guangdong and Zhejiang provinces. The delegation underscored the significance of promoting stable, healthy, and high-quality development within the real estate sector. It called on local authorities to assume full responsibility, make effective use of their policy autonomy in real estate regulation, and implement targeted, city-specific measures to enhance the systematic effectiveness of policy execution. The aim is to consistently reinforce the stabilization trend in the real estate market.

The delegation urged accelerated development of safe, comfortable, green, and intelligent housing to meet the public’s evolving expectations. It stressed the need to take comprehensive actions to stabilize expectations, stimulate demand, optimize supply, and mitigate risks, in order to advance the market’s recovery with greater intensity.

Commenting on the Ministry’s research, Li Yujia, Chief Researcher at the Guangdong Housing Policy Research Center, noted in an interview with Jiemian News that the investigation serves as a concrete step toward implementing the State Council executive meeting’s directive to “make greater efforts to stop the decline and stabilize the real estate market.” He added that both Guangdong and Zhejiang rank among the top two in national economic output and real estate scale, making their roles in market stabilization not only critical but also unavoidable.

Li highlighted the increasing concentration of the real estate market in major provinces and cities, stating that Guangdong and Zhejiang account for one-fifth of the country's new home sales. According to him, these provinces possess significant effective demand and market potential. Their ability to maintain stability plays a decisive role in ensuring broader stability across both the national economy and real estate sector.

The report pointed out that since the beginning of the year, Guangdong and Zhejiang have continued to expand the impact of real estate policies, adopting multiple strategies to stimulate housing consumption potential while advancing the construction of high-quality housing. In the first half of the year, the online contracted transaction area for newly built commercial housing in both provinces registered year-on-year growth. Second-hand housing transactions remained active, and inventory digestion cycles for commercial housing in major cities returned to reasonable levels. These developments have effectively stabilized market expectations and further consolidated the trend toward stabilization.

Cities such as Guangzhou and Shenzhen have actively advanced the implementation of urban real estate financing coordination mechanisms, with credit approval and financing volumes ranking among the highest nationally. Ningbo and Zhuhai have rolled out consumer-friendly measures such as “trade-in” and “transfer with existing mortgage,” and hosted promotional events like “housing fairs” and “good house festivals” to effectively unlock housing consumption demand. Hangzhou has adhered to a demand-based land supply strategy, implementing precise land allocations and establishing a mechanism that links core elements such as people, housing, land, and capital to support market equilibrium and stability.

Li observed that the Ministry’s visit to Guangdong and Zhejiang placed particular focus on key cities, each of which demonstrated unique approaches to achieving market stabilization. He noted that in areas like Guangzhou and Shenzhen, where the real estate market is sizable, it is essential to reinforce financing coordination mechanisms and credit disbursement to balance both supply and demand. In other cities, the priority lies in revitalizing market activity.

He further stated that the current policy stance is not merely a repetition of past market rescue efforts but aims to stimulate demand—reflecting a return to housing's residential and commodity attributes. From this perspective, provinces with a high concentration of young people and new urban residents, and strong potential demand for housing upgrades, are well-positioned to be among the first to achieve stabilization.

The delegation emphasized that, despite complex domestic and international economic conditions, regional authorities and relevant departments have been resolutely implementing the decisions of the CPC Central Committee and the State Council. The campaign to ensure housing project deliveries has made solid progress, safeguarding homebuyers’ legal rights. The continued implementation of a coordinated policy package has led to a year-on-year increase in both new and second-hand housing transactions nationwide during the first half of the year. The overall real estate market has maintained a stable posture, with the share of second-hand housing transactions gradually increasing. In several provinces, the volume of second-hand housing transactions has exceeded that of new homes, indicating emerging trends in the market.

Li concluded that based on the information from this research, provinces and cities with large populations of young people and new residents are now facing the most favorable housing conditions in history. Combined with significant earlier price corrections, this environment has reinforced the dominant position of second-hand housing for first-time buyers and consolidated the core transaction scale in the secondary market. In the new housing sector, the concept of “good houses” is being realized, improving the efficiency of housing supply and stimulating demand for better living standards. As a result, total transaction volumes—encompassing both new and second-hand homes—will consolidate a stable foundation for the market.