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Economic Watch: China expects robust rigid housing demand, aims to secure supply

2022-02-25 00:57

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BEIJING, Feb. 24 (Xinhua) -- China expects robust rigid demand for housing, the country's housing regulator said Thursday, with demand in the sector shored up by an influx of migrants to urban areas and people's desire for better housing.

Over 11 million new jobs are created in urban areas every year, one factor that has generated rigid demand for housing in the country, Wang Menghui, minister of housing and urban-rural development, told a press conference.

China is still in the stage of rapid urbanization, as indicated by the increase in population and the number of families in urban areas, Wang noted.

Official data shows that the number of permanent urban residents in China had risen to 64.72 percent of its population by the end of 2021, with the number expected to continue growing amid the country's urbanization drive.

On top of demand from new arrivals in cities, Wang said that exiting city-dwellers also wish to improve their living environment and conditions, while residential communities built before 2000 are failing to satisfy the desire for bigger and better houses.

China's urban development has entered a crucial phase of urban renewal and the country boasts great domestic demand, Wang said, explaining that that process entails upgrading old infrastructure as well as building it anew.

Factoring in these demands, the ministry plans to ramp up the supply of government-subsidized rental housing, including the provision of 2.4 million housing units this year, and to renovate over 1.2 million homes in run-down areas, according to Wang.

While rolling out policies to ensure that both rigid demand for housing and the demand for improvements are met, China will also make efforts to stabilize the prices of land and houses, as well as expectations.

The minister said that the country will work to make sure that the property market is running smoothly and maintain the continuity and stability of regulatory policies.

The rebuilding of old urban residential communities, along with major renovation projects like urban pipeline networks, will be promoted, Wang said, adding that the country also aims to advance the construction of new infrastructure that is digitalized, network-based and intelligent.

In a tone-setting annual economic meeting held in December, China pledged efforts to better cater to the reasonable demand from home buyers and adopt city-specific policies to boost the virtuous cycle and healthy development of the sector.

As the real-estate industry is an important sector in bolstering the domestic market, the ministry will take measures to expand domestic demand and stabilize growth, making contributions to broader economic development, Wang said.
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