Multiple Regions Intensify Housing Market Stabilization Policies to Reinforce Recovery Momentum

On August 18, the Zhaoqing City Housing Provident Fund Management Center unveiled its “Administrative Measures for Housing Provident Fund Contributions and Usage by Flexible Employment Personnel,” broadening support for both basic and upgrade-oriented housing needs among gig and contract workers.

Throughout August, numerous municipalities have announced new real estate initiatives. According to Securities Daily, Beijing, Tianjin, Xi’an, Suzhou and other cities have rolled out policies aimed at stabilizing their property markets, encompassing adjustments to provident fund regulations, incentives for “trade-in” home purchases, acquisition of existing commercial housing stock, and direct homebuyer subsidies. Analysts agree that these sustained regional efforts to stabilize the housing sector should help rebalance supply and demand, underpinning the market’s gradual turnaround.

In July—traditionally a slow month for property transactions—key indicators softened. Data from the National Bureau of Statistics showed month-on-month declines in new home prices across multiple city tiers, and a 4.0 percent year-on-year reduction in the cumulative area sold of newly built commercial residences over the first seven months of 2025.

Li Yujia, chief researcher at the Guangdong Provincial Housing Policy Research Center, observed that market stabilization is an iterative process. He explained that policy adjustments, seasonal consumption patterns, second-hand listings and broader economic fundamentals all influence short-term indicators, but he stressed that the overall recovery trajectory remains intact.

Yan Yuejin, deputy director of the Shanghai E-House Real Estate Research Institute, noted that the rise in cities recording price declines reflects a deep adjustment phase. He urged local authorities to fully implement stabilization measures, balance supply with demand, and foster positive price and market expectations.

Local governments have stepped up implementation on both supply and demand fronts. On the supply side, the Hainan Provincial Department of Housing and Urban-Rural Development and related bodies issued a directive on August 15 to mobilize idle land and housing stock. The notice encourages using provident fund returns to purchase a portion of existing commercial housing for public rental purposes and to deploy secured refinancing for acquisition and allocation of affordable units.

In Fuzhou, the Municipal Bureau of Natural Resources and Planning alongside two other departments released measures on August 13 to streamline planning and construction approvals and to revise floor-area ratio calculations. These adjustments aim to improve the business climate, enhance living standards and invigorate property development.

To bolster demand, authorities are leveraging housing provident fund tools to lower financing thresholds. On August 13, the Hefei City Housing Provident Fund Management Center relaxed time restrictions for converting commercial mortgages to provident-fund loans, reducing borrowing costs for contributors. A day earlier, the Suzhou City Housing Provident Fund Management Center expanded loan eligibility, setting the down-payment floor at 15 percent of the purchase price for first- and second-home buyers to support both essential and upgrade purchases.

Since September 2024, supportive policies have driven a steady market resurgence. The newest stabilization measures are expected to reinforce this recovery. Li Yujia highlighted that the year-on-year declines in new and second-hand home price indices across 70 major cities have narrowed continuously, with clear signs of a bottoming process. He added that accelerated supply-side optimization and urban renewal projects are generating fresh growth drivers, while “trade-in” demand for improved homes holds considerable untapped potential.

Yan Yuejin affirmed that the market fundamentals for a sustained recovery in the second half of 2025 are solid, bolstered by active policy interventions. He recommended that local governments prioritize price stability in the third quarter by continuing to reduce home-purchase costs and unlocking latent buyer demand. Moreover, he emphasized the importance of absorbing second-hand inventory to optimize the supply-demand balance and create a more favorable environment for new home sales.