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Speakers:

Mr. Ni Hong, minister of housing and urban-rural development

Mr. Song Qichao, assistant minister of finance

Mr. Liu Guohong, vice minister of natural resources

Ms. Tao Ling, deputy governor of the People's Bank of China

Mr. Xiao Yuanqi, vice minister of the National Financial Regulatory Administration

Chairperson:

Ms. Shou Xiaoli, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

Oct. 17, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning! Welcome to this State Council Information Office (SCIO) press conference. Today, we have invited Mr. Ni Hong, minister of housing and urban-rural development, to share information on promoting the steady and healthy development of the property sector and to address issues of interest. Also in attendance are Mr. Song Qichao, assistant minister of finance; Mr. Liu Guohong, vice minister of natural resources; Ms. Tao Ling, deputy governor of the People's Bank of China (PBC); and Mr. Xiao Yuanqi, vice minister of the National Financial Regulatory Administration (NFRA). 

Now, I'll invite Mr. Ni to give his briefing.

Ni Hong:

Ladies, gentlemen, and friends from the media, good morning! I'm pleased to meet with you today to discuss developments in the property sector, alongside my colleagues from the Ministry of Finance (MOF), Ministry of Natural Resources (MNR), PBC, and NFRA. First, I'd like to express my sincere thanks for your attention to and support of our work in the property sector.

The Communist Party of China (CPC) Central Committee attaches great importance to the steady and healthy development of the property sector. On Sept. 26, a meeting of the Political Bureau of the CPC Central Committee emphasized the need to stabilize the property market and halt its decline. The meeting also stressed that we should strictly limit expansion, optimize existing resources, and improve the quality of housing. It also called for addressing public concerns by enhancing policies on land use, taxation, and financing to foster a new development model for the real estate sector. On Sept. 29, the State Council convened an executive meeting to study and arrange specific implementation measures.

The Ministry of Housing and Urban-Rural Development (MOHURD), along with the MOF, Ministry of Natural Resources, PBC and NFRA, has guided local governments to take prompt action. This includes implementing existing policies and introducing new ones through a comprehensive package of measures aimed at stabilizing the market and ending its downward trend. 

These measures involve scrapping restrictive policies, easing financial burdens, and intensifying support. 

We have given municipal governments greater decision-making powers to regulate the real estate market, allowing them to reduce or abolish restrictions on housing purchases based on local conditions. These include eliminating restrictions on housing purchases, sales, and pricing, as well as scrapping relevant standards for ordinary and non-ordinary housing. 

We've lowered the interest rate for housing provident fund loans by 0.25 percentage point; lowered the down payment ratios for housing mortgages, with the minimum down payment ratio for both first and second homes set at 15%; decreased interest rates for existing loans; and reduced taxes and fees for those selling old homes to buy new ones. Through implementing these policies, we have alleviated home purchasing costs and loan repayment pressures, helping people fulfill their needs for both basic and improved housing.

Through providing monetary compensation, we plan to renovate 1 million homes in urban villages and dilapidated housing. Residents in urban villages are eager for such renovation because their living environment is unsatisfactory and rife with hidden safety risks. According to our investigations, 1.7 million homes in urban villages across 35 major cities need renovation. When including other cities nationwide, this number becomes significantly larger, as there are renovation needs in other cities as well. A separate investigation shows that 500,000 old and dilapidated houses across the country require renovation. This 1-million-home renovation initiative primarily targets residential projects with suitable conditions that can be expedited through enhanced policy support. By receiving monetary housing compensation, residents can choose appropriate housing according to their preferences and needs, eliminating or reducing the need for temporary housing as they can relocate directly to their new homes. This will also facilitate the sale of existing commercial housing. By year-end, loans to white-listed real estate projects will reach 4 trillion yuan. The urban real estate financing coordination mechanism will work to include all qualified real estate projects in the "white list" and ensure loans are granted when conditions are met, thereby addressing their reasonable financing needs.

We can see that these policies have taken effect. The decline in property development investment and sales of new homes, among other main indicators, has continued to narrow. Particularly, since the end of September, there has been a significant increase in the number of visits to new property projects and in the number of sale contracts, while transactions of second-hand houses have continued to rise. The market is showing positive changes.

Reports indicate that many local governments have intensified policy support for the property sector, resulting in a rebound in the property market of first-tier cities. Moving forward, we will work with relevant departments to firmly implement the decisions and arrangements of the CPC Central Committee and the State Council, carrying out each task to fully realize policy benefits and serve more people.

Now, my colleagues and I are ready to answer your questions. Thank you.