"Bilingual Financial News" Central Bank: Housing rental industry is an important direction for the new development model of real estate in the future
2024-08-13
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Recently, the official website of the People's Bank of China released the China Monetary Policy Implementation Report for the second quarter of 2024. The report pointed out that the housing rental industry should be supported for sustainable development, and the housing rental industry is an important direction for the future development of the real estate market.
Image source: Xinhua News Agency
The housing rental industry in China, which is expected to see robust demand and stable supply, is a "crucial direction" for the new development model of the country's real estate market in the future, the People's Bank of China (PBOC) said on Saturday.The People's Bank of China (PBOC) said on August 10 that with the increase in rental demand and the stabilization of rental supply, the housing rental industry is an "important direction" for the future new real estate development model.
Given the profound changes in the supply and demand dynamics of the real estate market, the scale of existing housing in China is already very large, the central bank noted in a report on monetary policy implementation.In its monetary policy implementation report, the central bank pointed out that under the new situation of profound changes in the supply and demand relationship in the real estate market, the scale of my country's existing housing stock is already very large.
On the demand side, market institutions project that the population in China with rental needs will exceed 200 million, and the market potential is relatively large, the PBOC said, adding that demand is rising among key groups, including recent graduates entering the workforce and low-income individuals in recent years.From the demand side, the number of people who need to rent houses in my country will exceed 200 million in the future, and the market potential is huge. The central bank said that in recent years, the rental demand for "good houses" has also increased not only among low-income groups but also among young people who have just graduated and started working.
On the supply end, with the recovery of the rent-to-sale ratio and the reduction of financing and operational costs, the commercial sustainability of the housing rental industry has been enhanced in recent years.From the supply side, with the recovery of the rental-to-sale ratio and the decline in financing and operating costs in recent years, the commercial sustainability of the housing rental industry has been enhanced.
As a result, an increasing number of housing rental enterprises have entered the market, and their large-scale and intensive operations are expected to deliver high-quality and more stable rental housing services, the PBOC said.The central bank said that more and more housing rental companies are entering the market, and large-scale and intensive operations will help provide better-quality and more stable rental housing services.
The central bank has beefed up financial support for government-subsidized housing by establishing a re-lending facility for such projects, according to the PBOC.The central bank said that it has recently improved and launched the affordable housing re-loan based on the original rental housing loan support plan.
By the end of June, China's financial institutions issued 24.7 billion yuan (about 3.46 billion US dollars) in rental housing loans, with the balance of government-subsidized housing re-lending facility amounting to 12.1 billion yuan.As of the end of June, financial institutions had issued 24.7 billion yuan in rental housing loans, and the balance of security re-loans was 12.1 billion yuan.
In the next step, China will improve the financial support system for housing rentals and direct more social capital investment into the sector, the central bank said.The central bank said that in the next stage, my country should improve the financial support system for housing rental and guide more social funds to invest in the real estate industry.
It added that a sustainable business model will be established to support the de-stocking of existing commercial housing and help promote the transformation and development of the country's real estate industry.The central bank said it is necessary to establish a sustainable business model, support the destocking of existing commercial housing, and help promote the transformation and development of the real estate industry.
English source: XinhuanetCompiled by: DannyProofreading: Wan Yueying, Qi Lei
Source: China Daily
