China's top party journal has called for a stronger policy package to be rolled out all at once, rather than in piecemeal steps, to stabilize the country's struggling property sector, which remains vital to the domestic economy and consumer demand. The article in Qiushi, the Communist Party's leading theoretical journal, urges concrete steps aligned with market expectations and implemented with sufficient force. It highlights the sector's critical turning point amid ongoing adjustments.
The commentary in Qiushi, published on Friday, states that China's property market is undergoing a profound adjustment and is at a critical turning point in its development. It notes that the transition from old to new growth models takes time, as does the shift in market behavior.
The article calls for stronger and more targeted macro controls to shorten the adjustment period, curb market volatility, and guide the sector toward a stable, healthy, and high-quality recovery. Policymakers should be prepared for the possibility of individual developers facing bankruptcies or restructurings.
“China’s real estate sector is now at a critical turning point in its development,” the article said. “The transition between old and new growth models takes time, as does the shift in market behaviour.”
This call underscores the property market's ongoing importance to the economy, despite challenges like developer bankruptcies and waning consumer confidence. The sector has historically contributed significantly to China's GDP, but investment and home prices have declined in recent years. The piece advocates for policies to be rolled out in one go, aligned with market expectations and with sufficient force, rather than through piecemeal steps.