BEIJING: China has pledged to give city governments more say in how they buy unsold homes, as part of efforts to stem the unprecedented property decline.
The central government will allow local officials more leeway in setting standards on which unsold homes to purchase.
They will also have more autonomy on deciding the acquisition price and future usage of such property.
China is trying to put a floor under the real estate meltdown amid weak domestic demand and a worsening job situation.
While the housing sector has picked up modestly on the back of government support, improvements have mostly been in the resale market as buyers remain concerned about developers’ ability to finish projects on time.
The government vowed to “fully unleash the demand” of buyers who are in need of homes or seek to improve their housing conditions.
It also pledged to “effectively prevent debt defaults by real estate companies”, signalling a further shift toward aiding the industry. — Bloomberg