More than 1.65 million presold homes have been delivered in China since the initiative of “ensuring timely delivery of pre-sale housing” was launched in July 2022. The achievement will boost market confidence in the real estate sector, analysts said.
The overall return-to-work rate of projects with special real estate loans is close to 100 percent and the housing delivery rate of the first batch of special real estate loan projects has exceeded 60 percent, China Media Group reported on Wednesday, citing statistics from the Ministry of Housing and Urban-Rural Development.
The completed housing area nationwide increased by 19 percent year-on-year to reach 339.04 million square meters in the first half of 2023. Of them, the completed residential area hit 246.04 million square meters, up 18.5 percent, accounting for 72.6 percent of the total completed area, according to the National Bureau of Statistics.
The significant increase in the completed homes was due to the smooth progress of the government’s efforts to ensure housing delivery to home buyers, analysts said.
The promotion of the presold house delivery work has accelerated the completion of real estate projects, boosted the confidence of home buyers and stabilized market expectations, the ministry noted.
The house delivery effort was carried out from the top down. Ministries and localities rolled out a spate of support measures to bolster the property sector recovery.
Financial authorities have ramped up support to ensure timely delivery of pre-sold homes, providing special loans of 550 billion yuan ($76.5 billion) in total, according to statistics from the People’s Bank of China, the central bank.
The growth-reinforcing policies, particularly in support of property sector, have effectively boosted home sales in the past months, Yan Yuejin, research director at Shanghai-based E-house China R&D Institute, told the Global Times on Wednesday.
Property developers have also ramped up home deliveries. For example, Country Garden delivered the largest number of homes in the first half at 278,000 units.
Sunac China delivered 133 projects in 62 Chinese cities for a total of 118,000 homes, up 31 percent year-on-year. Greenland Group achieved the overall delivery of 100,000 homes, up 20 percent year-on-year.
Ensuring the delivery of pre-sale housing has become the focus of the real estate industry, and the delivery ability of real estate developers will be crucial to win the trust of home buyers, financial institutions and local governments, analysts said.
The real estate market is still in an adjustment period, and some of the developers still face cash pressure.
“Ensuring the delivery of pre-sale housing” remains a major focus of macroeconomic policies, and more funds to support the effort will be doled out, according to an analysis of the China Index Academy seen by the Global Times on Wednesday.
The academy also suggested that in the process of ensuring home delivery, priority should be given to projects that can achieve a balance of funds or have a relatively larger amount of cash reserves, analysts said.
(Global Times)
