According to the housing ministry, there is still significant potential and opportunity for China’s property sector to flourish, aided by the country’s rapid urbanization and growing demand for good housing.
Speaking at a news conference on Friday, Ni Hong, China’s minister of housing and urban-rural development, stated that the country will prioritize providing good housing to the public while overhauling the housing and urban-rural development sectors in tandem.
With shifts in supply and demand, China’s real estate market is continually adjusting. However, good signals have emerged as various policy measures begin to take impact, according to the minister.
DEMAND FOR GOOD HOUSING.
Ni further on the concept of excellent housing, stating that, while its standards may change with social and economic progress, the definition primarily includes homes that are green, low carbon, intelligent, and safe.
According to Ni, China’s housing sector has already reached a new stage of development, with consumers placing a higher value on house quality.
With increased homebuyer expectations, the minister believes it is time to embrace new technology, products, and materials in house construction.
Ni noted that efforts should be made to encourage property developers and builders to move from a high-speed, quantity-centered growth model to one that focuses on enhancing quality, technology, and services, as this will assist push the transformation and growth of the housing and construction sectors.
During the press conference, Dong Jianguo, vice minister of housing and urban-rural development, stated that the country has made significant progress in developing criteria for good housing and is working to build related systems and optimize services.
China’s urban housing sector has achieved significant progress. By the end of 2023, the per-capita home building area in urban regions had surpassed 40 square meters, while the total urban built-up area in the country had reached 64,000 square kilometers.
Qin Haixiang, vice minister of housing and urban-rural development, stated that as part of the urban renewal initiatives, the country has built over 40,000 pocket parks and more than 100,000 kilometers of urban green paths, providing people with leisure and recreation opportunities while also making cities more livable.
Here’s a table of stocks with their ticker symbols and the exchanges they are listed on, which are exposed to China’s real estate sector:
| Company | Ticker Symbol | Exchange |
|---|---|---|
| China Evergrande Group | 3333.HK | Hong Kong Stock Exchange (HKEX) |
| Country Garden Holdings | 2007.HK | Hong Kong Stock Exchange (HKEX) |
| Sunac China Holdings Ltd. | 1918.HK | Hong Kong Stock Exchange (HKEX) |
| China Vanke Co., Ltd. | 2202.HK | Hong Kong Stock Exchange (HKEX) |
| Agile Group Holdings Ltd. | 3383.HK | Hong Kong Stock Exchange (HKEX) |
| Longfor Group Holdings Ltd. | 0960.HK | Hong Kong Stock Exchange (HKEX) |
| Shimao Property Holdings Ltd. | 0813.HK | Hong Kong Stock Exchange (HKEX) |
| Poly Property Group Co., Ltd. | 0119.HK | Hong Kong Stock Exchange (HKEX) |
| China Overseas Land & Investment | 0688.HK | Hong Kong Stock Exchange (HKEX) |
| Guangzhou R&F Properties Co., Ltd. | 2777.HK | Hong Kong Stock Exchange (HKEX) |
| China Resources Land Ltd. | 1109.HK | Hong Kong Stock Exchange (HKEX) |
| Kaisa Group Holdings Ltd. | 1638.HK | Hong Kong Stock Exchange (HKEX) |
| China Jinmao Holdings Group Ltd. | 0817.HK | Hong Kong Stock Exchange (HKEX) |
| CK Asset Holdings Ltd. | 1113.HK | Hong Kong Stock Exchange (HKEX) |
| Henderson Land Development Co. Ltd. | 0012.HK | Hong Kong Stock Exchange (HKEX) |
Securing the Sound Supply
China has attempted to match consumers’ diversified housing desires with an acceptable supply, hoping to calm expectations and boost confidence in the property market.
As part of its most recent initiatives, the country is shifting from the old pre-sale model to a “sales upon completion” method, which has been implemented in multiple locations to reduce the risks associated with incomplete projects.
The new strategy allows houses to be sold only after they are completed. Dong stated that developers must agree to do so when acquiring land from municipal governments.
Despite the policy shift, China continues to face a serious problem in assuring timely housing delivery. According to the housing ministry, roughly 4 million pre-sold homes are expected to be turned over to customers by the end of the year.
To meet this goal, the country established a “white-list” process to ensure that all qualified property developers had equal access to funding support.
According to Dong, commercial banks have currently provided loans totaling around 1.4 trillion yuan (about 197.2 billion US dollars) to over 5,300 property projects, effectively promoting home building countrywide.
As urbanization develops across the country, local governments are increasing the supply of cheap housing and rental choices to fulfill the rising demands of the working class, the younger generation, and new urban inhabitants.
According to ministry data, almost 440 billion yuan was spent on the construction of inexpensive housing and makeshift housing for shantytown restorations in the first seven months of this year.
Dong stated that these residences are essential to people’s livelihoods, and the country must ensure that they are well-constructed and of high quality.
Local governments must follow decent housing regulations so that people may live in healthy and convenient environments, he said.
Shayne Heffernan
