China seeks to bolster rental housing market amid property slowdown
- People’s Bank of China and the National Administration of Financial Regulation prioritise rental unit supplies in large cities to meet the needs of young workers
- Joint circular tells commercial banks to increase credit support for the development and construction of rental housing
Beijing has pledged more financial support for China’s home rental market in 2024, as the residential property sector slump continues and willingness to buy homes drops further.
The People’s Bank of China and the National Administration of Financial Regulation said in a joint circular released over the weekend that they would boost rental unit supplies in large cities, where home prices are far beyond the affordability of most young workers.
They also said authorities should facilitate supply-side structural reforms in the rental sector to ensure ample supply and affordable prices.
The goal is to revitalise existing housing stock
“[Financial support] should target the challenges of groups, such as new urban residents and young people, primarily in large cities,” the circular said.
“This involves supporting various entities in the construction, renovation and operation of long-term rental housing.
“The goal is to revitalise existing housing stock, effectively increasing the supply of both affordable and commercial rental housing.”