Stabilize the market, promote transformation and promote the high-quality development of real estate

　　The National Conference on Housing and Urban-Rural Construction held at the end of last year pointed out that in 2024, we should adhere to the position that houses are used for living, not for speculation, adapt to the new situation of major changes in the relationship between supply and demand in the real estate market, stabilize the market, prevent risks, promote transformation, build a new model of real estate development, achieve a new balance between supply and demand, and promote the high-quality development of real estate. In this regard, the meeting put forward nine specific measures from two aspects: stabilizing the real estate market and building a new model of real estate development, so as to convey confidence in the real estate market in 2024. As these policies and measures are implemented, it is expected that the real estate market will stabilize and improve next year.

　　In 2023, the Ministry of Housing and Urban-Rural Development actively took measures to stabilize the real estate market, and adhered to the policy of "one city, one policy, and precise policy" to meet the demand for rigid and improved housing, achieve a new balance between supply and demand, and promote the stable and healthy development of the real estate market. At the end of August, many ministries and commissions issued a number of real estate optimization policies, including the implementation of "recognizing the house without recognizing the loan" for the first set of housing, reducing the down payment ratio and interest rate, implementing the personal income tax policy to support residents to buy houses, reducing the intermediary fee for the sale of second-hand houses and other policy tools. Local governments have stabilized the market by implementing policies based on the city, one city, one policy and precise policies. Solidly promote the work of guaranteeing the delivery of buildings and safeguard the legitimate interests of buyers. From January to November, the total transaction volume of first-hand houses and second-hand houses nationwide achieved positive growth year-on-year. The optimization of policies has created a favorable policy environment for the release of housing consumption and has a positive effect on improving the activity of the real estate market. In November, the main responsible comrades of the Ministry of Housing and Urban-Rural Development said in an interview with the central media that building a new real estate development model is the fundamental solution to solve the real estate development problems and promote the stable and healthy development of the real estate market. We should always adhere to the position that "houses are for living, not for speculation", focus on meeting the demand for rigid and improved housing, and strive to make people live in good houses, which further expounds the ideas and tasks of building a new model of real estate development.

　　In 2024, we will accelerate the construction of a new model of real estate development, promote the structural reform of the supply side in the housing sector, improve the "guarantee+market" housing supply system, lead development and meet demand with high quality, new technology and good service, and strive to make "everyone have a house to live in and everyone live in a good house".

　　The first is to establish a new mechanism for the linkage of "people, housing, land and money". At the moment when the relationship between supply and demand has undergone major changes, the development of real estate needs to start with the scientific allocation of factor resources, with people setting houses, land setting houses and money setting houses, really starting from the actual housing needs of residents, matching the scale of housing supply and product types based on the characteristics of people’s flow and demand, and at the same time matching the corresponding land supply and financial support to better match supply and demand.

　　The second is to improve the basic system of the whole life cycle of houses from development and construction to maintenance and use. The management mechanism that runs through the whole life cycle is also an important measure to adapt to the new situation of real estate supply and demand. With the continuous expansion of China’s housing stock and the decline of the incremental market, the methods of development, financing and sales need to be improved and adjusted according to the new market situation. In terms of stock, it is also necessary to strengthen the system construction of housing physical examination, pension and insurance to ensure that residents can live in good houses, good communities and good communities for a long time.

　　The third is to implement the "three major projects" and speed up the solution to the housing problems of new citizens, young people and migrant workers. Since 2023, the central government has repeatedly emphasized the active promotion of the "three major projects" in important meetings, and the the State Council executive meeting has successively deliberated and adopted relevant guiding opinions. The "three major projects" can actively play the role of stabilizing investment and consumption. Among them, the detailed rules for the implementation of the transformation of villages in cities are expected to be introduced one after another in various places, and a number of projects entering the implementation stage will support the stabilization of the real estate market at both ends of supply and demand; The implementation strategy of affordable housing construction has gradually become clear, and the placement-type affordable housing has been explored and implemented in some cities.

　　The fourth is to build a good house and create a new track in the housing field. China’s housing development is moving from "with or without" to "with or without", and the demand for improved housing also puts forward higher requirements for housing quality. A good house is rich in connotation. From the aspect of standard construction, this meeting proposed to "improve the engineering construction standards, focus on building a good house, issue specifications for residential projects, and start from the aspects of building height, elevator, sound insulation, green, intelligence and accessibility" and "strengthen the drive of science and technology, and study the future-oriented construction technology of a good house".

　　Generally speaking, building a new model of real estate development is an important way to promote high-quality development and stability of the market. It is necessary to build a housing supply system that is government-oriented, provides basic guarantees and market-oriented to meet multi-level needs, to meet the rigid housing needs of wage earners and to meet the diversified and improved housing needs of urban and rural residents. It is necessary to improve the basic system, improve the pre-sale system of commercial housing and optimize the supervision of pre-sale funds. It is necessary to speed up the implementation of the "three major projects" and solve the housing problems of new citizens, young people and migrant workers. With the establishment of a new model of real estate development, the real estate market is expected to further improve, and there is still room for the release of rigid and improved housing demand. It is expected that the sales of new houses will remain at around 10 trillion yuan in the next few years. After more than two years of deep market adjustment, the "favorable factors" in the real estate industry are increasing. With the concerted efforts of policies at both ends of supply and demand, the market is expected to gradually stabilize at the bottom, and the high-quality development of real estate will achieve new results.