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Updated March 9th, 2024 at 15:35 IST

China vows "forceful" approach to revitalise beleaguered home sales market

Since 2021, the property market has been marred by successive crises, leading to defaults by major developers like China Evergrande Group and Country Garden.

Reported by: Business Desk
China real estate
China real estate | Image:Shutterstock
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Amid ongoing challenges in China's residential property market, Minister of Housing and Urban-Rural Development Ni Hong has declared plans to bolster home sales in a "forceful" and "orderly" manner. The announcement comes as the property sector continues to grapple with weak demand and liquidity crises triggered by regulatory crackdowns on high leverage among developers.

Since 2021, the property market has been marred by successive crises, leading to defaults by major developers like China Evergrande Group and Country Garden. Consequently, numerous housing projects have been left unfinished, leaving homebuyers frustrated and calling for government intervention.

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Ni stressed on the need for a pragmatic approach, suggesting that some developers should be allowed to undergo bankruptcy or restructuring according to legal and market-based rules. Premier Li Qiang also echoed the urgency for reform, highlighting the development of a new model for the troubled sector. This new model aims to prioritize the construction of affordable housing and meet the growing demand for homes across the country.

Furthermore, Ni reiterated China's stance against property speculation, asserting that "housing is for living in, not for speculation." This emphasis underscores the government's commitment to promote stability and sustainability in the housing market.

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(With Reuters inputs)

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Published March 9th, 2024 at 15:35 IST

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