The Chinese Communist Party announced new real estate policies at the end of September, with more than 50 cities, including the top four tier-one cities, implementing various measures such as loosening purchase restrictions. However, mainland netizens are still skeptical. Many real estate agents are also maintaining a cautious attitude towards the future outlook. Residents in Shanghai without housing options are emphasizing that the key issue is the lack of affordability.
The People’s Bank of China and the China Banking and Insurance Regulatory Commission announced four financial policies on the evening of September 29, in an attempt to stabilize the housing market. Subsequently, local governments and state-owned banks have announced optimization measures.
The Ministry of Housing and Urban-Rural Development of the Chinese Communist Party declared on October 5 that more than 10 provincial-level administrative regions and over 50 cities have each introduced their own real estate optimization policies.
During the National Day holiday, there were reports of a booming real estate market in Shanghai, with news even circulating about some properties being fully booked for viewings. However, in response to this information, many netizens expressed disbelief; some comments even suggested that there may be hidden motives behind these reports.
Some netizens bluntly stated that there might be property manipulators involved. Apart from speculations about manipulators, other netizens pointed out that it could be just a temporary upsurge, and a new round of adjustments might be looming in the future. Some even directly questioned whether these reports of a heated market were carefully orchestrated marketing activities by certain property projects to attract attention and boost sales, creating a false impression of a rebound in the real estate market.
Shanghai netizen “阿冬” said: “There are several real estate agencies in our community, and even during the National Day holiday, there was no rest, but there wasn’t a single person in front of the company. Who do you think these houses are being sold to?”
Shanghai netizen “mimi姐姐小姐姐” shared: “My house has been on the market for two years and still no takers.”
The doubts raised by netizens are not unfounded. Given the sluggish real estate market, how do real estate agents view the official new policies?
A recent report by the Central News Agency on October 6 revealed that visits to several real estate agencies in Shanghai showed that the number of people viewing properties was not as high as expected. Some storefronts even had no customers, and when salespersons saw journalists entering the shop, they mistook them for potential buyers and warmly inquired about their needs.
A real estate agent in Minhang District, Shanghai, stated that the new policies might attract some buyers with a demand for housing. However, overall, “those who are not buying or cannot afford to buy a house will not change their minds because of these policies.”
Another agent in Jing’an District mentioned that while loosening purchase restrictions could bring some vitality to the market, for those buying for self-occupation, the impact is minimal. “Buying one house already entails a heavy burden, why would one purchase more?”
They believe that lowering interest rates may reduce monthly expenses by a few thousand yuan, but the overall impact of the policy still needs to be observed.
What is the perception of consumers towards the official policies?
Mr. Chen, a Shanghai resident in his thirties, who has been married for over two years, currently rents a house with his wife in the Jing’an District. He has been house-hunting for the past year but has not found any ideal properties. “The ones we like are unaffordable, and the ones we can afford, we do not like.”
He expressed that he feels the new policies from the authorities are irrelevant to people like himself who do not already own a house, and over the past one or two years, despite the continuous introduction of measures to optimize the real estate sector, the fundamental issue remains “no money, cannot afford it.”