The State Council executive meeting presided by Premier Li Keqiang on May 4 decided to develop the house leasing market to promote the new type of urbanization.
Experts interviewed by the Economic Information Daily said that China’s housing policy attached importance to both renting and selling. At the central government’s work conference held at the end of 2015, it was pointed out that the house leasing market should be developed. Individuals and investors are encouraged to purchase commercial housing, and being the supplier in the house leasing market. Developing enterprises whose major business is house leasing is also encouraged.
Meanwhile, a document about the economic system reform was created by the National Development and Reform Commission and approved by the State Council. The document suggested promoting housing system reform to meet the needs of new city dwellers. The migrant population that meets the conditions will be gradually included in the range to apply for public rental housing.
The document also suggested researching support policies to promote the development of house leasing enterprises. Thus the stock of real estate can be reduced.
Promoting the large-scale development of the house leasing market can help reduce consumers’ market entry cost and relieve their purchasing pressure, said Zhu Zhongyi, former vice-president of the China Real Estate Industry Association. “In the future, the supply mode will change to become demand-oriented,” he added.
According to a basic calculation, in 2014 alone, the house leasing market involved 100 million people, and annual rent reached over one trillion yuan, said Gao Zhiyong, head of the real estate market supervision department at the Ministry of Housing and Urban-Rural Development. He said this is a big market, and also an important opportunity for the transformation of real estate enterprises.