SMM April 9 News:
The 2025 Government Work Report proposed to "continue efforts to stabilize the real estate market." Local governments have actively responded, with many optimizing housing provident fund loan policies, and some regions introducing home purchase subsidies and trade-in policies to stimulate housing demand and enhance market confidence in the real estate sector. Recent media reports indicate that several first-tier cities are conducting research and preparing policies to stabilize the real estate market. This has led to market expectations of more favorable policies in the future, thereby promoting the stabilization of the real estate market. Since Q1 2025, the transaction prices of land in Beijing, Hangzhou, and Chengdu have hit record highs, and the rising sentiment in land auctions in core cities has also driven the real estate sector's growth. As of 13:17 on April 9, the real estate development sector rose by 2.9%. Among individual stocks, Everbright Jiabao, Guangyu Group, Gree Real Estate, and Tianbao Infrastructure hit the daily limit, while New Town Holdings, Zhangjiang Hi-Tech, and Da Ming City led the gains.
News
[Two Departments: Fixed Subsidies for Cities Implementing Urban Renewal Actions] On April 8, the General Office of the Ministry of Finance and the General Office of the Ministry of Housing and Urban-Rural Development issued the "Notice on the 2025 Central Financial Support for Urban Renewal Actions." The central government will provide fixed subsidies to cities implementing urban renewal actions based on regions. Among them, the total subsidy for each city in the eastern region will not exceed 800 million yuan, the central region will not exceed 1 billion yuan, the western region will not exceed 1.2 billion yuan, and municipalities directly under the central government will not exceed 1.2 billion yuan. Funds will be allocated annually based on the progress of the work.
According to media reports, several first-tier cities are conducting research and preparing policies to stabilize the real estate market. Among them, relevant departments in Wuhan stated that they are preparing policy research and will implement it in a timely manner based on market conditions, continuing efforts to further stabilize the real estate market. (Cailian Press)
The rising sentiment in land auctions in core cities has led to the sale of multiple high-premium and high-unit-price plots. In terms of land auction activity, since Q4 last year, with the phased stabilization of real estate sales, the land market has also seen positive changes. The sentiment in land auctions in core cities has risen. In Q1 2025, the average premium rates for residential land in Hangzhou and Shanghai reached 43.3% and 29.0%, respectively, while Chengdu's average premium rate exceeded 20%. The transaction prices of land in Beijing, Hangzhou, and Chengdu hit record highs. (Cailian Press)
[General Office of the CPC Central Committee and State Council: Continue Efforts to Stabilize the Real Estate Market, Timely Lower Housing Provident Fund Loan Rates] The General Office of the CPC Central Committee and the State Council issued the "Action Plan to Boost Consumption." The plan proposes to better meet housing consumption needs, continue efforts to stabilize the real estate market, intensify the renovation of urban villages and dilapidated houses, and fully release the potential of rigid and improved housing demand. Special bonds are allowed to support city governments in purchasing existing commercial housing for use as affordable housing. Implement tax policies to promote the stable and healthy development of the real estate market. Timely lower housing provident fund loan rates. Expand the scope of housing provident fund use, support depositors in applying for housing provident fund personal housing loans while withdrawing provident funds to pay for down payments, increase support for rental withdrawals, and promote pilot work for flexible employment personnel to deposit provident funds. Click for details
[NDRC's Li Chunlin: Consumption Promotion Document First Mentions Stabilizing the Stock Market and Real Estate Market, Efforts to Make People's Consumption Confidence Stronger] On March 17, Li Chunlin, Deputy Director of the National Development and Reform Commission (NDRC), stated at a press conference of the State Council Information Office that the "Action Plan to Boost Consumption" is the first consumption promotion document to emphasize stabilizing the stock market and real estate market, proposing corresponding measures to make people's consumption confidence stronger, expectations more stable, and confidence stronger. Li Chunlin stated that during the drafting process, the plan focused on incremental policies that can be intensified, implemented, and felt by the public, comprehensively expanding the consumption of goods and services. One of the key points is to comprehensively exert efforts from both the supply and demand sides. He stated that previous consumption policies mostly started from the supply side, emphasizing leading and creating demand through supply. This plan increases policy efforts on the demand side, focusing on promoting residents' income growth and reducing burdens.
[NBS: Intensify the Renovation of Urban Villages and Dilapidated Houses] Fu Linghui, spokesperson for the National Bureau of Statistics (NBS), stated at a press conference of the State Council Information Office that since the beginning of this year, China's real estate market has been generally stable, continuing to move towards stabilization. However, it should also be noted that the real estate market in some regions is still in adjustment. In the next stage, it is necessary to adjust restrictive measures according to local conditions, intensify the renovation of urban villages and dilapidated houses, fully release the potential of rigid and improved housing demand, improve the multi-subject supply, multi-channel guarantee, and purchase-rent housing system, accelerate the construction of a new development model for real estate, and promote the stable and healthy development of the real estate market.
[Zhejiang Province: Deepen the Construction of "Good Houses," Encourage Local Optimization of Floor Area Ratio Calculation Regulations] The General Office of the Zhejiang Provincial Government issued the "Action Plan to Vigorously Boost and Expand Consumption." It mentioned deepening the construction of "good houses," encouraging local optimization of floor area ratio calculation regulations, increasing the supply of improved housing according to local conditions, orderly promoting the sale of existing houses, and promoting the construction of a new development model for real estate. Support depositors in withdrawing personal account housing provident funds to pay for down payments on new commercial housing. Promote the implementation of preferential tax policies for housing transactions and increase credit support. Support the renovation and reconstruction of rural self-built houses according to regulations, and promote integrated PV roofs. Increase the use of special bonds for land reserves. Encourage local state-owned enterprises to purchase existing commercial housing at reasonable prices as needed. In 2025, 60,000 urban village renovation projects will be implemented.
[Shenzhen Increases Housing Provident Fund Loan Limits, Maximum Limit Raised to 2.31 Million Yuan] On March 16, the Shenzhen Housing Provident Fund Management Committee issued two documents, the "Supplementary Provisions on the Shenzhen Housing Provident Fund Loan Management Regulations" and the "Notice on Matters Related to Shenzhen Housing Provident Fund Interest Subsidies," which will take effect on March 24, 2025. First, adjust the maximum (basic) limit: the maximum limit for individual applications has been increased from 500,000 yuan to 600,000 yuan; the maximum limit for family applications has been increased from 900,000 yuan to 1.1 million yuan. Second, adjust the maximum limit increase scenarios and ratios: the increase ratio for purchasing the first home in the city has been increased from 20% to 40%. The increase ratio for multi-child families purchasing homes has been increased from 10% to 50%. This policy applies to families with two or more children, including both minor and adult children. Adult children with housing provident fund loan records nationwide are not counted. Added a scenario for purchasing affordable housing in the city, with an increase ratio of 20%. Multiple increase scenarios can be accumulated, with a maximum increase of 110%, meaning individuals can borrow up to 1.26 million yuan, and families can borrow up to 2.31 million yuan. According to previous data, the first home increase policy can cover over 90% of loan applicants. (Shenzhen Release) Click for details
[Harbin Introduces New Real Estate Regulations, Public Area and Internal Building Area Must Be "Clear at a Glance"] According to Harbin Release, on March 14, the Harbin Municipal Housing and Urban-Rural Development Bureau issued the "Notice on Further Regulating the Publicity of Commercial Housing Sales Area," effective immediately. The notice requires real estate development enterprises to prominently display the building area, internal building area, public area and its calculation basis for each commercial housing unit in the sales office, improving the transparency of area publicity.
Various Voices
Zhongtai Securities research report stated that in Q1 2025, the land market saw a volume decrease but price increase: although the proposed construction area decreased YoY, the land transfer fee YoY growth rate turned positive, and the premium rate rebounded significantly. From the perspective of city tiers, different tiers of cities showed significant differences in land transfer fee growth rates and premium rates, indicating a K-shaped recovery in the land market. In terms of investment, both the real estate sales market and the land market are in a recovery period, and the policy environment continues to exert efforts, making it the most relaxed in recent years. It is expected that the sector's valuation will continue to recover with policy support, and it is recommended to pay attention to leading real estate companies with stable performance and high safety.
Kaiyuan Securities expects that policy adjustments in first-tier cities will strongly support the demand side, gradually improve housing price expectations, and then radiate to second- and third-tier cities, gradually achieving "stabilization" of housing prices, leading to an improvement in the fundamentals of the real estate market.
Ping An Securities pointed out: The General Office of the CPC Central Committee and the State Council issued the "Action Plan to Boost Consumption." In terms of real estate, the plan generally continues the overall tone of the real estate sector in the Two Sessions Government Work Report, clearly proposing to better meet housing consumption needs, continue efforts to stabilize the real estate market, and it is expected that subsequent policy support and the gradual stabilization of the real estate market will follow. The mid-term real estate market may usher in a strategic opportunity for product innovation and the bottom of the cycle. If "four-dimensional upgrade" "good houses" truly appear in the future, it may trigger a new round of improved demand release. It is expected that real estate companies with light historical burdens, optimal inventory structures, and strong product capabilities will benefit first.
For more analysis on the fundamentals, policies, and future trends of the real estate market, please participate in the 2025 SMM (3rd) Wire and Cable Industry Development Conference and Wire and Cable Industry Exhibition .
