China Considers Govt Buying Unsold Homes To Save Property Market: Report (Photo on X Yicai 第一财经 @yicaichina)

The Chinese government is planning to buy millions of unsold homes across the country, according to a Bloomberg report. The State Council is currently collecting feedback on the preliminary plan from different provinces and governments The local government bodies will initiate the measures to purchase the homes, the report cited sources familiar with the matter.

After buying the property from the distressed developers using loans given by the state banks, the government bodies would transform the complexes into affordable housing. The government undertakes the measure save the struggling property market in the country. 

The State Council is collecting feedback on the preliminary plan from various provinces and government bodies, the report added. 

The country”s property sector has seen a deep slump over the years, causing a crisis among the developers. The banks too were not ready to obey the government”s suggestion to provide credit to the struggling sector amid the risk of weak sales. Home sales values of the top developers had slipped 45 percentage from a year earlier, according to a recent survey by a major real estate entity. It is said that there are thousands of uncompleted apartments across China. 

The confidence of the new developers also lost amid the existing developers” collapse, bringing the condition of the sector from bad to worse over the years.

However, the officials are mooting a detailed plan and feasibility, and it is believed to take a few months for the final draft of the plan to be completed. 

The Politburo of the Communist Party of China held a meeting on April 30, and decided to improve policies to solve mounting housing inventories. The government has decided to go ahead with the plan.