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Slow and steady: Mainland China on path to becoming the largest economy in the globe

To date, the country has already surpassed the GDP of the European Union

The country aims to unswervingly promote a mechanism to foster the long-term development of the real estate industry. iamlukyeee/Shutterstock

Mainland China is poised to become the largest economy in the world by 2030. For the first time in history, TRT World reported that it has surpassed the gross domestic product (GDP) of the European Union in 2021, which saw a 5.2 percent growth to roughly USD17 trillion. In comparison, Mainland China’s GDP surged by 8.1 percent to USD17.7 trillion from USD3 trillion a year before.

To ensure stability, the government has been introducing measures to help all industries recoup, particularly the real estate sector, which has been through the trenches in the past couple of years.

Yet despite the fluctuations, Chinese officials have conveyed their utmost confidence in the sector, stressing that the measures introduced to stabilise house prices, land costs, and expectations will ensure that it progresses at a steady pace. 

On 15 March, Global Times shared a report by the National Bureau of Statistics (NBS) that revealed an increase in property investments by 3.7 percent year-on-year to CNY1.45 trillion (USD227.9 billion) from January to February of this year. 

Prices for new homes soared month-on-month in January for the first time since September of last year. Meanwhile, prices for secondhand homes rose by 0.1 percent in January from December, with Shanghai surging at 0.6 percent and Beijing at 0.5 percent. 

The data indicates an optimistic outlook for the sector and the significance of the measures introduced by the government in the fourth quarter of 2021, particularly adjustments on financial and credit policies, which include lower mortgage rates from commercial banks and smaller down payments for first-time homebuyers. 

More: Commercial real estate recoups as hybrid work model takes over work from home set up

NBS spokesperson Fu Linghui said: “[Mainland] China will uphold the principle of ‘houses are for living in, not speculation’ and will unswervingly promote a mechanism to foster the long-term development of the real estate industry, while maintaining stability in market expectations, as well as land and property prices.” 

Fu added that they aim to improve the long-term rental market, advance the development of government-subsidised homes, and encourage the residential sector to better fulfil buyers’ demands. 

With over 11 million individuals employed yearly in urban areas, Wang Menghui, head of the Ministry of Housing and Urban-Rural Development, told Reuters that the demand for housing is moderately high, noting that the pandemic has prompted buyers to look for more spacious houses. 

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With the government’s support, luminaries at the PropertyGuru Asia Property Awards (Mainland China, Hong Kong, Macau) — namely China Overseas Property 中海企业发展集团, Huabiao Venture Group Co., Ltd 广东华标创业集团有限公司, Shui On Land 瑞虹新城 by 瑞安房地产, Beijing Heli Yunxing Real Estate Co., Ltd, 北京合力运兴置业有限公司, Zhuhai Huafa Properties Co., Ltd. 珠海华发实业股份有限公司, Xingcheng-Renju 成都人居成兴置业有限公司 — will have the foundation to get back on track and reclaim their glory days.  

In February, Caixin Gobal found that at least four banks in Beijing have planned to issue CNY25 billion worth of bonds to back property acquisitions as the capital ramps up its efforts to stabilise the sector. 

Know of any award-worthy residential, commercial, or industrial projects in Mainland China, Hong Kong, and Macau? Nominate them for the 9th edition of the PropertyGuru Asia Property Awards (Mainland China, Hong Kong, Macau) on or before 30 September 2022. To know more, visit AsiaPropertyAwards.com/Award/MainlandChina/.   

Gynen Kyra Toriano, Digital Content Manager at PropertyGuru, wrote this article. For more information, email: [email protected]. 

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