China has announced plans to expand its support for unfinished property projects to four trillion yuan ($562 billion), a significant increase from the 2.23 trillion yuan already deployed. This move aims to stabilize the country’s struggling real estate sector, which has been a key concern for the world's second-largest economy. Housing Minister Ni Hong revealed the measure at a briefing on Thursday.
This expansion comes as part of broader efforts by the Chinese government to achieve its 5% economic growth target for 2024. In September, China unveiled a series of initiatives to revive the property sector, including lowering borrowing costs on $5.3 trillion worth of mortgages and relaxing rules for second-home purchases.
The "white-list" programme, designed to ensure unfinished homes are completed and delivered to buyers, has already deployed 2.23 trillion yuan to support these projects. Many homebuyers have protested over incomplete construction across the country, highlighting the urgency of the issue.
While property sales showed signs of improvement in early October, broader economic data has indicated weak momentum. As China prepares to release its third-quarter economic figures on Friday, local governments have also taken steps to ease housing market restrictions. Major cities like Beijing and Shanghai have widened homebuyer eligibility, while smaller cities such as Tianjin and Chengdu have removed restrictions on new home purchases.
Analysts expect these measures to provide a marginal boost to the housing market in the fourth quarter, with some predicting a potential market recovery in major cities.
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