Key steps to stabilize real estate market

Mortgage rate lower, sending positive signals to struggling property firms

China's real estate market is expected to become fully stabilized in the second half of 2024, ending a three-year adjustment period, if the latest rounds of highly supportive policy measures are well implemented to boost homebuyer confidence and ease liquidity stress among developers, experts said on Friday.

They also expect restrictions on housing purchases and loans will be gradually phased out, while more policy measures may be needed to reinforce market expectations and accelerate recovery of the sector.

Chinese authorities on Friday eased mortgage rules and vowed to fight the tough battle of dealing with the risk of unfinished commercial housing. They also asked to promote presold home deliveries, reduce housing inventories and improve financing for developers. Share prices of developers on A-share markets subsequently surged.