Vice Minister of Housing and Urban-Rural Development： Housing demand remained stable without obvious contraction.

　　China news agency, Beijing, December 13th (Reporter Chen Su) Dong Jianguo, Vice Minister of Housing and Urban-Rural Development of China, said at the 2023-2024 China Economic Annual Meeting on the 13th that from January to November this year, the total transaction volume of first-hand and second-hand houses in China achieved a year-on-year positive growth, indicating that the housing demand remained stable and there was no obvious contraction.

　　The just-concluded Central Economic Work Conference emphasized that real estate risks should be actively and steadily resolved to promote the stable and healthy development of the real estate market. Accelerate the construction of affordable housing, the construction of public infrastructure for both ordinary and emergency use, and the transformation of villages in cities. Improve the relevant basic systems and accelerate the construction of a new model of real estate development.

　　Dong Jianguo said that since the beginning of this year, the real estate market in China has generally shown a trend of "before, high, middle and low, and then stabilized". From January to November, the transaction volume of first-hand houses in China decreased, while the transaction volume of second-hand houses increased. Together, first-hand and second-hand houses achieved positive growth year-on-year. "This shows that the housing demand remained stable, and there was no obvious contraction, but the transaction structure changed." We should also see that China’s real estate industry is in the process of transformation and adjustment, and it needs to accurately recognize changes, respond scientifically, take the initiative to seek changes, and accelerate the construction of a new model of real estate development.

　　He said that the relationship between supply and demand in China’s real estate market is undergoing major changes.

　　First, the main contradiction of housing development in China has changed from total shortage to total basic balance, and structural supply is insufficient. In terms of total amount, by the end of 2020, the urban per capita housing construction area has reached 38.6 square meters, and the number of housing units per household has exceeded one. Compared with the developed economies in the world, at this stage, the data of newly started housing sales will fall back and enter a new equilibrium period. From the structural point of view, there are insufficient affordable housing, high housing prices in big cities, and housing difficulties for new citizens and young people.

　　Second, the proportion of second-hand houses in the commercial housing transaction structure has increased, and the stock market has increased.

　　Third, the demand for housing has changed from "with or without" to "with or without", and the demand for improved housing has increased.

　　Fourth, the real estate market between cities is further divided, which requires more precise policy in the policy of the city.

　　Fifth, the contribution of real estate to the macro-economy has changed. The contribution of real estate to macro-economy has changed from incremental driving to stock driving, and the way of real estate driving investment has changed from supporting urban expansion to participating in urban renewal. Stock housing can drive the development of intermediary rental property industry, and the characteristics of real estate industry as a service industry are more obvious.

　　In view of the new situation of supply and demand in the real estate market, Dong Jianguo said that we should respect the law, the reality and the scientific response. First, adjust and optimize the real estate policy due to the city’s policy. The second is to solidly promote the work of ensuring the delivery of buildings, ensuring people’s livelihood and ensuring stability. The third is to steadily resolve the debt default risk of housing enterprises. Accelerate the construction of a new model of real estate development and promote the stable and healthy development of the real estate market. (End)