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With the property sector in China facing a lot of trouble, the country has launched a raft of measures aimed at turning things around. This includes requesting local governments to purchase homes from the struggling developer while at the same time easing the rules on property purchase.

And although the Chinese economy showed impressive growth at the beginning of the year, that growth was being overshadowed by the tumultuous housing sector, necessitating expertise from professionals like an estate planning attorney Montana. The real estate sector accounted for more than 30% of the economic activity in the country.

The vice primer, He Lifeng, urged municipal governments to purchase all unsold houses before turning them into affordable housing units. Affordable housing plan has been touted as a viable solution to the troubled real estate sector.

In addition, the People’s Bank of China (PBOC) announced that it will come up with a 300 billion Yuan (about $41.5 Billon) fund to facilitate the state uptake of the unsold houses.

In a press conference in Beijing, China, the deputy governor of the central bank, Tao Ling, intimated that this funding would encourage commercial banks to support state enterprises in purchasing unsold homes before turning them into affordable housing units, thus impacting the Residential Rental Market. She also added that the 300 billion Yuan provided by the central bank could underpin a 500 billion Yuan credit to support such a huge purchase of homes.

According to Estate planning attorney Montana, the idea for Beijing to push local governments to purchase millions of unsold homes is pushing stocks up and bringing back confidence amongst investors. This has seen streams of new inventors pouring money back into the sector.

Similarly, a newspaper run by the country’s housing ministry described the measures as ‘heavyweight policies’ that would usher in a ‘significant historic moment’ for the Chinese real estate sector, marking one of the historic moments that transformed Asia.

Falling sales

In the past two years, the Chinese government has unsuccessfully been introducing a number of measures to revive the troubled real estate sector. In that regard, the experts and analysts have urged the government to do much more.

The rescue measures introduced on Friday came as a relief especially after the property market dampened to the lowest level in April.  In that period, property investment had declined by 9.8%. This is an increase from the 9.5% decline register in the first quarter of the year.

It is important to note that in china, land is mostly owned by the state and the government reserves the rights to sell the properties to developers.

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