Meeting the rising demand for housing

After the Central Economic Work Conference in December said "houses are for living in, not speculation", the Government Work Report in March reiterated the fact and vowed to accelerate the establishment of a long-term mechanism to promote the steady and healthy development of the real estate sector.

The aim of the recent tightening policies is to curb speculation in the real estate sector, prevent market risks, and promote the healthy development of the property market. But to achieve those goals, the regulating policies should also focus on the supply and demand sides of the property market.

On the demand side, the housing loan policy has been further tightened, and an increasing number of cities are imposing restrictions on homebuyers. On the supply side, the supply of land for construction will be increased in key cities to meet the rising demand for houses and curb prices. But to effectively cool down the realty in the long run, authorities have to streamline the rental property market and build more affordable houses.