“房地产市场绝对有助于推动需求，” 顾云昌表示， “我们需要提高销售量以确保稳定的投资，并稳定房价，尤其是在大城市中。”
Policy housing, or subsidised homes for low-income groups and residents affected by urban renewal plans, as well as commercial and industrial properties will be in focus, according to Gu Yunchang, the deputy director of the Property Policy Expert Committee of China’s Ministry of Housing and Urban-Rural Development, and Li Yujia, chief researcher at Guangdong Property Policy Research Institute, a policy advisory branch of the provincial housing regulator.
China’s property sector has recovered fastest among all industries. For instance, home purchases pushed up the prices of new homes in 70 major cities by 0.4 per cent in April. In fact, property sales recovered almost to 2019 levels for the month, aided by a surge in debt financing.
But domestic consumption could face problems if unemployment were to increase. Retail sales, for instance, fell 7.5 per cent across the country, higher than forecasts, alongside a historic 6.8 per cent contraction in China’s national output during the first quarter.
“The property market absolutely helps drive demand,” said Gu. “We need to improve sales to ensure stable investment, and also to stabilise housing prices, especially in large cities.”
He emphasised stability and said policymakers had learned their lesson from the property boom that followed the stimulus implemented during the 2008 financial crisis. The stimulus pushed housing prices sky-high, while the household leverage ratio rose to record levels. “Now is not the time for short-term stimulation, but to stabilise the market,” Gu added.
Li echoed this view, saying that in the short term, Beijing still needed to maintain stability of the property market. He said the property bubble was well under control, although he expected it to edge up amid increasing land sales.
The property sector contributed 7 per cent of China’s gross domestic product last year, and its influence on industries such as construction and machinery, for instance, makes it one of the pillars of the economy.
This year, however, Beijing is expected to stress the development of commercial and industrial properties, Gu said, in line with its recent strategic development plans, which include boosting health care, tourism and new infrastructure such as fifth-generation internet services and new-energy vehicles.
Both Gu and Li said the central government was expected to rein in highly-leveraged purchases and further tighten control on speculative capital flowing into the property market. It would also not seek to stimulate demand by loosening quota and price limit restrictions, which have helped curb speculation over the past several years.
Beijing limits the number of houses an individual and a family can buy and the minimum down payments required for home purchases. Policymakers also set the maximum prices of property projects and do not allow homeowners to resell housing units in the secondary market until after a certain number of years.
The meetings are expected to maintain the idea that houses are for living, not speculation, and focus on the healthy development of the property market. “As long as monetary policies maintain the current status, they will have a very obvious lifting effect. Then it’s unnecessary to further stimulate the property market,” Li said.