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The State Council announced new measures aimed at stabilizing China’s real estate market and reversing its downward trend. These efforts will include integrating urban renewal projects with the renovation of urban villages and dilapidated housing, alongside employing a multifaceted approach to stimulate demand for improvements.
Recent cabinet meetings reaffirmed the steadfast commitment to “stabilize and stop the decline” in the housing sector. The mention of adopting “effective measures” suggests there is room for further policy development and innovation.
Despite these assurances, market expectations remain cautious, particularly since the Politburo’s July 30 meeting did not specifically address real estate policies. As a result, short-term indicators such as sales, prices, and investment continue to decline across various regions last month.
Many local governments in China are proactively refining housing policies to curb decline and stabilize the market. These efforts include promoting urban renewal aimed at upgrading urban infrastructure and transforming development drivers. For instance, Beijing recently announced that eligible families can purchase multiple homes outside the Fifth Ring Road without restrictions, as of August 8.
Enhanced policy measures have bolstered market confidence, and experts believe that other major cities like Shanghai and Shenzhen are likely to adopt similar strategies. Stabilization and halting the decline are the primary goals of current real estate policies, and regional efforts are expected to further refine these initiatives.
Urban renewal remains a central focus for achieving high-quality urban development. Policies supporting these projects are anticipated to be expedited in the latter half of the year. Local governments are expected to continue focusing on reconstructing urban villages and repairing substandard housing, as well as fully implementing existing policies—such as using special bonds to support the purchase of existing housing inventory.
The latest council meeting also outlined strategies to enhance consumer spending and investment. Key priorities include continuously unlocking consumption potential, removing restrictions within the sector, and fostering growth in new consumption areas like services and innovative categories.
Efforts to boost effective investment will be intensified by leveraging significant projects that set the tone for broader economic activity. The government aims to shift investment focus toward improving people’s lives and supporting the private sector, adapting to evolving economic demands.
Experts agree that expanding consumption cannot rely solely on short-term stimulus measures. Structural reforms—such as improving institutional mechanisms—are essential to ensure sustainable growth and raise the overall consumption rate. Maintaining household income, strengthening financial stability, enhancing social security, and improving living standards are all critical components to support consumer confidence and spending growth.
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