Officials Worry Housing Revival Will Die in Second Half Without More Support

Real estate industry insiders are skeptical of the housing revival, expecting it to last three months at most. They're using the rebound to unload inventory, but investment is barely positive. Now the government admits it will have to work on stimulating the housing market if it wants the current trend to carry into the second half of the year.

Officials interviewed by the 21st Century Business Herald reporter at the Ministry of Housing as well as in Henan, Anhui and elsewhere noted that although the property market in the short term is good, to support housing and improve housing demand, stable housing consumption, stability and promoting existing property transactions and housing construction in the second half will be the key tasks of the system.

...Wang Jue Lin, deputy director of the live research center construction department told the 21st Century Business Herald reporter, the current economic downward pressure, the consumption of slow growth, lower export weak recovery situation, investment one of the troika pulling the economy's role as important, especially in real estate to pull growth in total social investment increasingly significant role. As a result, the status of real estate is also in 2015 drawing to an unprecedented level, from the past suppression into current support.

As a result, stable housing consumption has become the theme of market regulation in 2015, the building housing the system is a top priority in 2015.

There is also "severe market differentiation." The top 40 cities saw sales growth of 5.8% yoy in May, and an increase of 1.7% in area sold. In smaller cities, sales fell 1.5% and area sold fell 0.2%.

iFeng: 经济增长乏力 下半年或继续刺激住房消费