On October 17, the State Council Information Office held a press conference to discuss measures for promoting the stable and healthy development of the real estate market. Song Qichao, Assistant Minister of Finance, outlined the government’s approach to utilizing special bonds for the acquisition of existing commercial housing as part of a strategy to provide affordable housing. He emphasized that this policy will be implemented voluntarily by local governments and based on their own decisions, adhering to the principles of the rule of law and market-oriented operations. The aim is to ensure a balanced return on project financing while allowing local authorities to allocate special bonds for the purchase of existing commercial properties designated for affordable housing.
To foster a stable and healthy real estate market, the Ministry of Finance plans to work alongside relevant departments to roll out policies that utilize special bonds for land reserve acquisition and the purchase of existing housing. These initiatives are designed to address key bottlenecks in the real estate sector and are significant steps in responding to the resolutions from the 20th National Congress of the Communist Party, expanding the scope of support through special bonds, and serving as project capital. They are expected to enhance the balance of supply and demand in the land market, alleviate liquidity and debt pressures on local governments and real estate enterprises, and increase the availability of affordable housing for the benefit of the public.
When discussing the specifics of implementing special bonds for land reserves, Song explained that the goal is to support localities in determining fair acquisition prices for existing land in collaboration with landowners, while also effectively managing any outstanding debts related to these land recoveries. This includes specifying the project details and land scope for the special bonds, expediting the issuance and expenditure of bonds, and ultimately improving the efficiency of land resource utilization and the effectiveness of bond funding.
He added that the support for local governments to effectively utilize special bonds for acquiring existing commercial housing as affordable housing will complement other related support policies. This collaborative approach aims to broaden local funding channels, efficiently manage existing housing stock to promote a balance of supply and demand, and optimize new housing projects to diversify sources of funding for affordable housing.
Looking ahead, Song indicated that the Ministry of Finance, along with relevant departments, will expedite the establishment of detailed policies and requirements to ensure these initiatives are implemented swiftly.
