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On July 21, Xinhua News Agency was authorized to broadcast the full text of the "Decision of the Central Committee of the Communist Party of China on Further Comprehensively Deepening Reforms and Promoting Chinese-style Modernization" (hereinafter referred to as the "Decision").

The Decision proposes to improve the system of protecting and improving people's livelihood, accelerate the establishment of a housing system that promotes both renting and purchasing, and accelerate the construction of a new model of real estate development. Increase the construction and supply of affordable housing to meet the rigid housing needs of the working class. Support the diversified housing needs of urban and rural residents. Fully empower city governments to regulate the real estate market, formulate policies based on the city, and allow relevant cities to cancel or reduce housing purchase restrictions and cancel the standards for ordinary and non-ordinary residential buildings. Reform the financing methods of real estate development and the pre-sale system of commercial housing. Improve the real estate tax system.

Chen Jie, director of the Housing and Urban-Rural Construction Research Center of Shanghai Jiao Tong University, pointed out that with the major changes in the supply and demand relationship of real estate, the real estate regulation policy tools must also change and advance accordingly, from the original high reliance on administrative means to market-oriented means, and pay more attention to precise policy implementation based on the characteristics of urban housing supply and demand and urban development needs. In addition, more emphasis is placed on the use of a mechanism combining "market + guarantee" to allocate housing resources, and policy implementation is centered on supporting rigid housing needs and releasing housing improvement needs.

"In the new era, the basic concept of 'housing for living, not for speculation' will still be upheld. Driven by the reform of real estate development financing and pre-sale systems and the reform and improvement of supporting systems related to credit, finance, taxation and land, the real estate market will allow commercial housing to return more to its commodity attributes, lower the threshold for acquisition, increase accessibility, better match supply and demand, and develop the real estate market more steadily and healthily." Chen Jie said.

Accelerate the establishment of a housing system that combines renting and purchasing

The "Decision" proposes to improve the system of protecting and improving people's livelihood, accelerate the establishment of a housing system that combines renting and purchasing, and accelerate the construction of a new model for real estate development.

Li Yujia, chief researcher of the Guangdong Housing Policy Research Center, mentioned that building a housing system that combines renting and purchasing was written into the reports of the 19th and 20th National Congresses of the Communist Party of China. It is the direction of development of my country's housing system in the new era and the main content of housing supply-side structural reform in the framework of the new real estate model.

Li Yujia believes that at present, the main body of housing demand is new citizens, young people, and migrant population, among which there are also salaried workers and talent groups. Their living mode is to rent first and then buy, or even rent for a long time. The housing system of renting and buying, on the one hand, regards renting as an important form of residence equivalent to buying a house, and it is necessary to achieve equalization in public services, such as settling down when renting a house, promoting the basic public service system provided by registering the permanent residence, and enrolling in public compulsory education when renting a house. In recent years, the housing system of renting and buying has taken shape, and the supply of large-scale rental housing in hot cities accounts for nearly 30%. Renting a house can settle down and enjoy public education. It has been implemented in hot cities.

Zhao Ran, director of the ICCRA Housing Rental Industry Research Institute, also pointed out that under the guidance of the national policy of "renting and purchasing at the same time", with the gradual completion of the bottoming out of affordable rental housing, the basic housing needs of new citizens and young people have been solved, providing them with stable housing security. Looking to the future, it can be expected that the target population of rental services will gradually expand from new citizens and young people with rigid needs to those who want to improve their living conditions. This change will further highlight the importance of rental housing in the new model of overall real estate development. People who want to improve their living conditions not only pursue the basic functions of housing, but also pay more attention to living quality and environment, which will further promote the rental housing market to develop in a diversified and high-quality direction.

Incorporate urban and rural residents into housing demand and support the diversified development of housing demand

The Decision proposes to increase the construction and supply of affordable housing to meet the rigid housing needs of the working class and support the diversified housing needs of urban and rural residents.

In the current housing security system, affordable housing mainly includes rental-type affordable housing and sale-type affordable housing.

Li Yujia mentioned that the biggest features of these two types of housing are low rent and low selling price. The purpose is to reduce the cost of urbanization, so that the working class and talent groups can integrate into the city at a low cost, no longer worry about housing, and thus let go and fight for a better life. In the next step, in addition to new construction, some housing sources will be solved by revitalizing existing stocks. In addition, in the future, idle land will be revitalized on a large scale and allocated affordable housing will be built. Allocation-type affordable housing will bear the heavy responsibility of stabilizing the industry after the decline of commercial housing, and it will also adapt to changes in the demand side through supply-side structural reforms.

The meeting also proposed "supporting the diversified improvement housing needs of urban and rural residents." Wang Yeqiang, a researcher at the Chinese Academy of Social Sciences and director of the Real Estate Committee of the China Urban Economics Society, believes that this statement clearly supports the diversified development of housing demand and includes urban and rural residents in housing demand, further enriching the hierarchy of housing demand.

First-tier cities' property market policies are expected to be further relaxed

The "Decision" proposes to fully empower city governments with the autonomy to regulate the real estate market, adopt policies based on the specific conditions of each city, and allow relevant cities to cancel or reduce housing purchase restrictions and cancel standards for ordinary and non-ordinary residential properties.

Li Yujia believes that giving city governments the autonomy to regulate the real estate market is to improve the distribution of power and responsibility between the central and local governments in regulating real estate and achieve equal power and responsibility, which is a manifestation of improving governance capabilities. In other words, giving the power of regulation to local governments will also give local governments the responsibility to stabilize real estate. At a time when cities and regions are differentiated and purchasing groups are differentiated, local governments need to implement city-specific policies on the premise of autonomy in order to manage real estate well.

Wang Yeqiang said that restrictions will be further relaxed from the demand side in the future. The meeting proposed "allowing relevant cities to cancel or reduce housing purchase restrictions", which means further relaxation of real estate market policies in first-tier cities, and "canceling the standards for ordinary and non-ordinary residential properties" and reducing transaction taxes will also stimulate further release of improvement demand.

The pre-sale system of commercial housing will gradually transform into current sale

The Decision proposes to reform the financing methods for real estate development and the pre-sale system for commercial housing and improve the real estate tax system.

Wang Yeqiang said that real estate development financing methods, commercial housing pre-sale system, real estate tax system, etc. need to further adapt to the housing system that combines renting and purchasing and the transformation of the new real estate development model.

The pre-sale system of commercial housing will be further reformed and improved. According to the monitoring data of China Index Academy, in the first five months of this year, the sales performance of existing houses was better thanOff-plan, accounting for more than 30%. From January to May 2024, the sales of commercial housing pre-sale was 250 million square meters, a year-on-year decrease of 31.0%; the sales of existing housing was 110 million square meters, a year-on-year increase of 23.0%, which was significantly better than pre-sale housing. In terms of proportion, the sales area of ​​existing housing accounted for 30.6% of the total sales area from January to May 2024, an increase of 8.1 percentage points over the whole year of 2023.

Zou Linhua, head of the housing big data project team at the Institute of Finance and Economics of the Chinese Academy of Social Sciences, believes that the reform of the pre-sale system of commercial housing means that the pre-sale system of commercial housing will not be abolished and will still exist. However, the market trend is that the sales of existing houses are the main ones, and the sales of pre-sale houses are declining. The overall direction of the reform of the pre-sale system of commercial housing should be to improve the efficiency of fund supervision and use on the basis of protecting the rights and interests of home buyers.

Industry insiders pointed out that as the real estate industry enters a new stage of development, new real estate development models are being built at an accelerated pace, and pre-sale system reform is also progressing steadily. In the future, it will gradually transform from pre-sales to current sales.

In terms of reforming the financing methods for real estate development, Li Yujia believes that the whitelist financing coordination mechanism should be fully implemented, that is, to strengthen the "consistency" of the two departments, the Financial Supervision Administration and the Ministry of Housing and Urban-Rural Development, in real estate policies. With the compliance of real estate projects as the "consistent orientation", the two departments will work together to strengthen the project "push-feedback" closed-loop mechanism and the loan "placement-use-repayment" mechanism, promote the incentive compatibility of the two management departments' policies, and focus on prompting real estate projects to meet the "5+5" standardized compliance conditions.

The Decision also mentioned the improvement of the real estate tax system. The industry believes that in the future, real estate-related taxes will be fully straightened out, the tax burden of development and transaction links will be reduced, and at the same time, the tax from the transaction link will be transferred to the holding link to encourage commodity housing transactions and circulation.