The relevant officials of the Central Finance Office explained in detail the spirit of the Central Economic Work Conference in 2025.

Question: What measures will be taken next year to stabilize the real estate market? Real estate has a strong correlation and broad impact, attracting high attention from society. Since the beginning of this year, the total volume of transactions for new and second-hand homes in China has remained relatively stable, with the rate of decline in housing prices narrowing. Regional market trends have shown differentiation, with varying increases and decreases in housing prices in different cities. Real estate development investment has continued to decline, as a result of efforts to reduce inventory and control new development, reflecting a rational response from real estate companies to the current market situation. It is important to have an objective analysis and correct understanding of this situation. On one hand, it should be recognized that there is still significant room for high-quality development of real estate in China. Looking at the demand for housing, by 2024, the urbanization rate of China's permanent population will be 67%, while the urbanization rate of registered residents is less than 50%. The rigid housing demand of "new citizens" such as newly settled migrant workers and recent university graduates is expected to continue to grow. From the perspective of improvement demand, although the total quantity of urban housing in China is considerable, there is still an imbalance in location distribution and ownership structure. A considerable portion of urban residents are not entirely satisfied with their housing, leading to a demand for upgrading to better housing. Many cities report that there is an increasing desire among citizens to sell their old homes and purchase new ones, with the proportion of second-hand home transactions rising from 28% in 2021 to 45% this year. This indicates that there is still considerable potential for improvement demand. Looking at the development of real estate industries in many developed countries, even after urbanization has stabilized, there remains a substantial annual demand for housing, and the real estate industry's contribution to GDP continues to be significant. There is still plenty of work to be done in urban redevelopment, particularly in the renovation of old and dilapidated buildings and urban villages. Meeting the rigid and improvement housing needs of urban residents is a task that has not been fully achieved, and there is still substantial potential for high-quality development in the real estate sector. On the other hand, it is crucial to promote high-quality development of real estate by building new models. The Central Economic Work Conference has deployed efforts to stabilize the real estate market and accelerate the construction of new models for real estate development. The focus going forward is on several key actions. Firstly, efforts should be made to stabilize the market from both the supply and demand sides. On the supply side, it is important to control the increase in supply, activate existing stock, encourage the acquisition of existing properties for reasonable purposes such as affordable housing, and accelerate the reduction of inventory while orderly promoting the construction of "good houses". On the demand side, more targeted measures should be taken to fully unleash the rigid and improvement demands of residents. Secondly, there needs to be active promotion of the transformation of real estate enterprises. Support should be given to real estate companies to accelerate the transition from focusing mainly on selling new homes to holding more properties and providing high-quality, diversified residential services. Efforts should also be made to enhance the role of the "white list" system for the protection of buyers to support the financing needs of real estate companies. Thirdly, it is essential to accelerate the construction of new models for real estate development. Reforms should be made to improve the basic system of real estate development, financing, and sales, determine the appropriate timing for the introduction of various basic systems under the new model of real estate development, deepen the reform of the housing provident fund system, gradually break the old and establish the new, and promote a smooth transition from old to new models.