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China has outlined fresh measures to step up urban renewal and stabilise its housing market as it prepares for 2026 under the new Five-Year Plan. At a national housing policy meeting in Beijing, authorities said local governments will adopt city-specific measures to manage housing supply, reduce inventory pressure and support reasonable demand. The plan includes renovating older urban areas, improving financing for stalled projects, promoting completed home sales, and expanding affordable housing. These steps aim to restore confidence in a sector that remains under prolonged stress.
China has reiterated its plan to intensify urban renewal efforts and stabilise the housing market as part of its broader economic priorities for 2026. The direction was outlined at a national housing policy conference held in Beijing, where officials reviewed ongoing challenges in the property sector and set out policy focus areas for the coming period. Advertisement
Authorities said urban renewal will be accelerated, with emphasis on renovating ageing residential communities, redeveloping urban villages and improving infrastructure in older city areas. These projects are expected to improve living conditions while also supporting steady housing demand in key urban centres. Local governments have been asked to move ahead based on local conditions rather than applying uniform measures across regions.
Stabilising the housing market remains a central objective. Officials said policies will focus on balancing housing supply and demand, reducing excess inventory and preventing sharp market fluctuations. Measures will continue to support reasonable housing demand, including for first-time buyers and those upgrading homes, while discouraging speculative activity.
The government also plans to promote the sale of completed homes instead of relying heavily on presales, a shift aimed at improving buyer confidence and reducing delivery risks. At the same time, local authorities will be encouraged to purchase suitable existing housing stock for use as affordable housing, resettlement homes and other social housing needs.
Financing support for stalled residential projects will remain in place through the project whitelist mechanism, allowing eligible developments to access bank loans and resume construction. Officials stressed that protecting homebuyers interests remains a priority, particularly for projects delayed due to developers liquidity issues.
The housing provident fund system will be further improved to better support urban residents, including young people and low-income groups facing housing pressure. Regulators also indicated continued efforts to strengthen oversight of developers funding and improve risk management in the sector.
China's property market has been under strain since 2021, with weak sales, falling prices and financial stress among developers weighing on consumer confidence and economic growth. Given that a large share of household wealth is tied to real estate, authorities view housing stability as critical to broader economic and social stability.
Source Reuters
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