It’s what they didn’t say – phrases dropped from ‘two sessions’ point to easing of China’s property curbs, according to analysts
- No mention of Xi Jinping’s famous ‘houses are for living in, not for speculation’ in Government Work Report signals policy change, say analysts
President Xi Jinping famously declared in 2017 that “houses are for living in, not for speculation”. The phrase immediately made its way into all official property policy, underpinning measures aimed at reining in China’s runaway house prices.
Fast forward to 2019 and things have changed.
Xi’s mantra was notably missing from a closely-watched economic report at this year’s legislative meetings in Beijing, as was any mention of a government pledge “to curb the rise of home prices”, first officially mooted last July.
The omission of such phrases from carefully worded scripts at the annual “two sessions” has given rise to hope that Beijing may be loosening its tight grip on the property sector.
“The expectation of easing has been reinforced by the report. We believe national sales are likely to fall from a high base last year, but home prices in first-tier cities could rebound,” said Tianfeng Securities property analyst Chen Tiancheng.
“Local governments have more incentives to loosen control under bigger fiscal pressure.”