Smaller cities mull inventory reduction

Lower-tier cities must take city-specific measures to reduce their residential property inventories gradually, as there is no heal-all solution, said analysts.

Jia Kang, a member of the 12th National Committee of the Chinese People's Political Consultative Conference, fiscal and tax expert at the Ministry of Finance, and a former director of the Chinese Academy of Fiscal Sciences, said that third- and fourth-tier cities must target local buyers who live and work there.

"Quite often, they do not have strong purchasing power, and reducing inventory cannot rely solely on providing mortgage loans. Each city has its specific conditions and problems to tackle, so there is no single model that every city can follow," said Jia.