According to experts, the main focus for Chinese government to stabilize the real estate market lies in the stimulation of the private housing demand and the strengthening of the low-cost housing building.

Qin Xiaomei ,research chief at CB Richard Ellis’ Beijing branch, said ,”The government are definitely concerned about how to keep the real estate market stable ,particularly at a time when the country’s economy has an increasing risk of falling down.
“For all I know, how to further catalyze the private housing demand could invite a heated discussion in the ongoing Central Economy Work Conference.”

In the total investment, that goes for real estate usually occupies 25 percent. So the government‘s revenue on land remise and tax have been greatly reduced due to the decreasing real estate investment and the diminishing number of trades.

The annual Central Economic Work Conference, convoked yesterday, will work out a framework for next year’s economic policy. In order to stimulate customer’s housing demand ,the government has already taken a number of measures, for example ,reducing the tax on real estate trades and axing the bank’ interest rates in 11 years .

The government is also looking to slacken its lending policy on those who want to buy a second home to further revive the stagnant real estate market. And Chongqing municipal government plans to provide individual income tax refunds to the people who will have their first-home purchases.

“The real concern of the government is the vibrancy of the market rather than its price,” said Qin Hong, deputy director of the policy research center under the Ministry of Housing and Urban-Rural Development. ”The government will explore more potential for private buying rather than the buying for the purpose of investment.”

Thanks to all these efforts, the real estate markets in some important cities have shown signs of revival.

13,721 forward delivery housing deals were done in November, an increase of 48 percent over the last month, according to the Beijing Property Transaction Management website.

Statistics obtained from Shanghai UWIN Real Estate Research Center indicates that 6,201 units of first-hand apartments with a floor space of 717,551 sq m were sold out in Shanghai in November, compared with 459,764 sq m in October.

However, quite a lot of transactions are related to low-cost housing.

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