KK Chiu, CEO of Cushman & Wakefield Greater China, speaks at the Regional Insights Forum 2024 in Beijing. [Photo provided to chinadaily.com.cn]
The property markets in most of China's cities have seen signs of stabilization but more efforts are still needed to make the recovery more solid, industry experts said.
"Besides the proactive fiscal policy and moderately loose monetary policy, other measures still needed to further fuel the recovery of the real estate sector, such as a pragmatic approach in managing the new land parcel supply and the change of uses for newly completed vacant assets, as well as more support to the "white list" property developers," KK Chiu, CEO of Cushman & Wakefield Greater China.
The latest housing price data indicated that the property market in the world's second-largest economy is on a stronger footing for recovery, supported by a raft of policy measures. In the country's 70 large and medium-sized cities, the price adjustment for commercial residential units has narrowed down on a year-on-year basis in November, according to the National Bureau of Statistics.
In the four first-tier cities — Beijing, Shanghai, Guangzhou and Shenzhen — overall new home prices dropped 4.3 percent year-on-year, a decline narrowing 0.3 percentage points from October. Notably, Shanghai saw a 5 percent increase in new home prices last month, the NBS said. For the 31 second-tier and 35 third-tier cities across the country, data also showed narrower drops in both new and second-hand home prices in November, according to the NBS.
For Dong Jianguo, vice-minister of housing and urban-rural development, confidence in the property market has been effectively boosted by a series of policy measures, and the property market has shown a positive trend, signaling a favorable shift towards stabilization.
Meanwhile, a moderately loose monetary policy will lower the cost of home purchases, reduce the buyers' loan pressure, easing the capital pressure of property enterprises. Through boosting expectations of the property market, both homebuyers, developers and investors are likely to increase confidence in the market, which will further promote market activity and achieve stabilization.
"We are now on the right track, the intense release of supportive measures boosts the confidence of the market and changes the expectations of the home buyers, property developers and investors," said Chiu, "But given the external uncertainties, we need more multifaceted efforts to consolidate the recovery of the market and then keep the momentum until the sector shall rise again."
According to Chiu, the new supply and vacancy rate in commercial property, especially the office sector in the first- and second-tier cities, needs to be addressed properly.
Chiu suggested that local governments and relevant bureaus should take a pragmatic approach in dealing with the idle stocks such as change of use to elderly homes, talented living quarters, affordable housing or hotels. Once the assets produce regular incomes, they may become a sensible option for securitization or form part of the recurring asset portfolios by long-term investors like insurance companies.
Tan Guoling contributed to this story.
