New Momentum in Housing! Promoting Real Estate Stability, New-Model Urbanization, and Urban Renewal

Adopting systematic and comprehensive measures to strictly control new residential construction, optimize inventory, and improve quality.Increase funding support for "white-listed" projects, utilize specialized loans and other instruments to activate idle land resources.Adjust home purchase restrictions, relax demand for first-time and renovation purchases, accelerate inventory clearance for commercial housing, reduce rental yields, tighten land, tax, and financing policies, and speed up the establishment of new development models in real estate. Policies to lower rental yields have already been rolled out—some cities have fully lifted purchase limits, others have further narrowed restricted zones or eased conditions. Other policies are actively planned and promoted.

Focusing on resolving issues such as insufficient comprehensive carrying capacity in county-level cities and weak industrial foundations, through targeted loans, policy bank long-term loans, and other active financial support.Accelerate infrastructure and industrial supporting facility construction in county-level cities.Promote industrial alignment between western and eastern regions, and drive the implementation of key projects.

Focusing on eliminating transportation "bottlenecks" and "dead ends", strengthen local government support via special-purpose bonds and other financial tools, build a series of regional (urban) railways, intercity rail lines, and urban rapid transit systems, and accelerate the formation oftransportation corridors, industrial clusters, and living hubs, enhancing integrated urban development levels.

Focusing on eliminating hidden risks in urban construction and operation.Prioritizing underground pipeline and "black box" project construction.Advance investment plans for next year’s projects in advance,fully implement urban lifeline safety projects, accelerate completion of flood control and drainage systems, and promptly address urban safety shortfalls..

With phased priorities: short-term focus on eliminating safety risks, medium-term promotion of aging facility upgrades, long-term advancement toward complete functional enhancement. Organize and implement urban infrastructure upgrade projects, prioritizing initiatives involving major public safety and critical livelihood protection.Urban network safety upgrades, elderly residential area renovations, village-wide comprehensive renewals, and urban traffic safety improvementsand other projects with orderly progress.Transform old districts (old factory areas) into high-quality spaces and enhance public service functions in citiesthrough construction projects.

Between 2023 and 2024, the reform commission has arranged central budget investments, increased national special-purpose funds, and super-long-term special-purpose bond funds exceeding 470 billion yuan.Key support is directed at urban gas, drainage, and other underground pipeline upgrades, as well as renewal projects in old urban districts and villages.In the coming years, urban renewal remains a key focus of government investment. In 2025, support will continue to be strengthened. Among the two 1,000-billion-yuan project lists and investment plans, urban renewal will hold a certain share, primarily targetinggas, water supply and drainage, heating, and other infrastructure construction, especially in large-population, high-density key cities and central urban areas. Priority will be given to projects that can commence this year’s fourth quarter, driving solutions to urgent issues like aging gas networks, urban flooding, and leaking water pipelines. Meanwhile, continued efforts are needed toexpand central budget investment support for renewal projects in old urban districts, villages, and hazardous housing renovations.We also need to explore incorporating renewal projects with measurable returns—such as old district (factory area) transformation—into local government special-purpose bond support frameworks.

Urban renewal involves massive market potential, with large-scale project investments far beyond what single governments can afford. It is essential toestablish diversified investment mechanisms, and must alsoactively attract broad participation from private capital. We will focus onhighly market-oriented, commercially viable sectors, perfect investment mechanisms, improve investment efficiency, and fully leverage the role of market-driven mechanisms. Forprojects matching moderate return expectations and social capital with investment willingness, we will also fully unleash the collaborative role of government and social capital—specifically the new PPP model—and mechanisms like infrastructure REITs, forming a sustainable urban renewal framework driven by government guidance, market operations, and full societal participation.