Beijing’s insistence on housing being for living in rather than speculation suggests a bailout for the sector is not forthcoming. Instead, there needs to be a focus on managing risks in the short term, finding new growth engines in the medium term and eventually reshaping the housing market.
Buyers are not impressed with the scant relief offered so far and remain determined not to pay for unfinished homes, leaving the property market and the wider financial system at risk, analysts say.
A 70-city index of home prices in July dropped compared with the prior month and a year ago, with lower-tier cities taking the brunt of the decline, according to the National Bureau of Statistics.
Local governments will be responsible for ensuring the delivery of housing projects, according to a Politburo statement, as China’s top leadership looks to contain the mortgage-payment crisis from spreading.