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MNI: Beijing Called On To Buy Housing Stock Over Local Govs

MNI (Singapore)
MNI (Beijing)

The central government can more efficiently buy up housing stock to bolster the real estate market than local governments, advisors tell MNI.

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Local authorities could lack the ability or motivation to absorb unsold housing from developers, risking the success of Beijing’s latest property rescue plan, advisors told MNI, with some calling for a more powerful central government-backed entity to purchase on a larger scale.

Li Yujia, chief research fellow at Guangdong Urban & Rural Planning and Design Institute, said profitable projects remain the key to whether local authorities fully utilise the new funding tool.

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Local authorities could lack the ability or motivation to absorb unsold housing from developers, risking the success of Beijing’s latest property rescue plan, advisors told MNI, with some calling for a more powerful central government-backed entity to purchase on a larger scale.

Li Yujia, chief research fellow at Guangdong Urban & Rural Planning and Design Institute, said profitable projects remain the key to whether local authorities fully utilise the new funding tool.

Keep reading...Show less