The Chinese government has announced a series of targeted interventions to address a sharp downturn in the real estate market, including expanded loan guarantees and tax incentives for homebuyers. The moves come as property sales dropped 28% year-on-year in November and developers face mounting defaults.
- Property sales in China declined 28% year-on-year in November 2025, marking the 15th consecutive month of contraction.
- The government will extend loan guarantees to cover up to 100% of financing for under-construction residential projects of designated developers.
- A new tax exemption will apply to first-time homebuyers purchasing units under 140 square meters, effective January 1, 2026.
- The People’s Bank of China has signaled readiness to lower the reserve requirement ratio (RRR) by 50 basis points by mid-2026 to inject liquidity.
- Over 70% of surveyed developers report negative operating cash flow for the past quarter, according to a National Bureau of Statistics survey.
- The measures specifically target the top 14 real estate firms with outstanding debts exceeding RMB 1 trillion collectively.
China’s central government has launched a comprehensive set of policy measures aimed at halting the collapse of its once-booming property market, with officials warning of broader economic risks if the sector continues to deteriorate. The new framework includes the expansion of state-backed loan guarantees for high-risk developers, allowing up to 100% of project financing to be covered under certain conditions. This initiative targets 14 major developers, including Country Garden and China Vanke, which have faced severe liquidity strains in recent months.