Editorial: With Speculation Curtailed, the People’s Housing Needs Remain a Priority
China’s real estate market has been in a tumultuous state in recent times, with many real estate enterprises at risk of default and a crisis of restructuring and liquidation looming over Evergrande. In turn, the slump in the housing market is slowing down economic growth, while contributing to the sharp decline in local revenue.
The recently-concluded Central Economic Work Conference clarified that efforts are needed to support the commercial housing market to better meet the housing needs of buyers and adopt city-specific policies to boost the virtuous cycle and healthy development of the sector. This is seen by observers as relief for strict policies implemented prior. Adjustment, however, is not a change in broad direction. The conference reaffirmed the principle that housing is for living in and not for speculation, while also pointing out that “expected guidance should be strengthen.” These adjustments amid tough reforms are necessary and good for the economy.
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