The introduction of “housing vouchers” for relocation projects in more than a dozen Chinese cities could help boost property transactions in local real estate markets which have been under downward pressure since the start of the year, industry experts said Wednesday.
Since March, families from at least 15 cities whose homes have been identified as local relocation projects have been made eligible for housing vouchers, China Business News reported.
Cities include Zhengzhou and Xinyang in Henan Province, Yibin in Sichuan Province, Wenzhou in Zhejiang Province, Changshu in Jiangsu Province, Jiangyin and the Lishui District of the provincial capital Nanjing.
People whose residential properties have been expropriated for government-led reconstruction projects will receive housing vouchers and can use them to purchase specific apartments during the validity period of the vouchers.
Zhengzhou, capital of central China’s Henan Province, on Monday released its interim measures for implementing reconstruction projects.
Families involved in the slum upgrading project in the central urban area will be compensated with housing vouchers, which they can use to purchase specific apartments designated by the local government.
The adoption of housing vouchers by these cities, although not new, should encourage real estate transactions in local markets.
“The measures are designed to meet the differentiated needs of people whose homes have been expropriated. Efforts will be made to provide flexibility and personalized services so as to boost local household consumption with more efficient supply,” Li said. Yujia, chief researcher at the Institute. residential policy research center of the provincial planning institute of Guangdong province.
“For example, Zhengzhou’s real estate market faces multiple negatives, including a downward trend, rising inventory and insufficient demand,” said Liang Botao, general manager of the Henan branch of China Index Academy. .
Liang said he expects the housing vouchers to help activate Zhengzhou’s real estate market, digest market inventory and boost market confidence.
In 2015, several cities launched similar housing vouchers for urban renewal projects. Other cities followed suit in 2016 to destock their housing inventory, according to public domain information.
Thanks to effective policies put in place to stabilize the housing market, the daily transaction volume of new commercial residential properties in 100 Chinese cities increased by around 20% month-on-month in the first 20 days of this month, Shanghai-based E-house China said. Research and development institution indicated in a report.
His forecast is based on the consistent housing market stabilization policies launched since March, especially after the Political Bureau of the CPC Central Committee called for more refined housing market policies.
With COVID-19 being gradually brought under control in Chinese cities, door-to-door transactions and market expectations are expected to further improve gradually, the report said.
On April 29, the Political Bureau of the Communist Party of China Central Committee met in Beijing and emphasized efforts to ensure that no systemic risks emerge in the real estate market.
The leaders also reiterated the principle that “housing is for living, not speculating”. Efforts should be made to improve housing policies according to local situations and meet the strong demand for better quality housing, the meeting decided.