Is China property for speculating? Xi’s Politburo lets real estate off leash after 6 long years
- Real estate policies across China will be adjusted faster to help nation cope with ‘setbacks’ from the ebb and flow of economic development in a post-Covid climate
- For years, President Xi Jinping said houses were for living in, not speculating – but the Politburo made no mention of that on Monday
After years of embracing increasingly restrictive property policies, China’s leadership says the time for change has come, and it will optimise policies in the long-embattled sector to shore up real estate while defusing financial risks in the broader economy.
A statement by China’s 24-member Politburo shows how Beijing is mapping out major policy changes that are aimed at lifting China’s sputtering economy out of the doldrums over the remainder of this year.
“The main challenge is the insufficient domestic demand, operational difficulties of some companies, high risks in key sectors, and complicated and severe external environment,” the official Xinhua reported, citing a statement by the Communist Party’s prime decision-making body.
The Politburo, which convened its July economic-analysis conference earlier than in previous years, described China’s post-Covid economic recovery as a “wave-shaped development, and advancement with setbacks” – rising and falling, with progress on the horizon.
[We should] adjust and optimise the real estate policy in a timely manner
Key tasks for the second half of this year are expanding domestic demand, improving confidence and preventing risks, it said.