New | China’s farmers can be a significant source of housing demand for lower tier cities, say experts

China’s plan to reduce the stock of unsold properties in lower-tier mainland cities by increasing demand from rural migrants has started yielding positive results, according to a Chinese property expert.

In some smaller cities, buyers including farmers and migrant workers have accounted for as much as 70 per cent of the total sales, said Chen Sheng, dean of the mainland-based China Real Estate Data Academy, a unit of the China Real Estate Association under the Ministry of Construction.

According to data provided by the city mayors in Longyan, Fujian province and Wuhu city in Anhui province, farmers and migrant workers accounted for 50 to 70 per cent of total home sales, according to Chen.

“Longyan and Wuhu are just two examples. There are a lot of other third and fourth tier small cities that have seen positive response from farmers and migrant workers,” said Chen.

Inventory problems that exist in the mainland real estate market will be largely solved when these policies are implemented to ensure so-called “new citizens” gradually settle down in the smaller cities, he added.