Deng Bibo, Secretary of the Shimen District Party Committee, Changde City, Hunan Province, in a speech at the opening ceremony of the Real Estate Event, called on China Communist Party (CCP) members and state officials to first begin buying as many houses as possible.
Deng’s call further illustrates the ongoing decline of China’s real estate market in recent years.
According to Da Ji Yuan, China’s economy continues to suffer as the real estate industry, which is the main source of government revenue, continues to plummet. Home sales in China in July fell nearly 30% from June.
To deal with the recent gloomy real estate market, many localities in China have continuously introduced policies to encourage farmers to buy houses in the city. Accordingly, farmers can use agricultural products to exchange houses.
Changchun City, Jilin Province, on Aug 11, announced a housing subsidy policy that allows farmers and fresh graduates or professionals with a university degree or higher. The housing allowance per square meter can be up to 200 yuan (about US$29.5).
Qinglong county in Guizhou province also announced a new policy on August 3. Under that, the local government will require the development of credit products tailored for migrant workers looking to buy a home. Besides, it will find an approach that helps farmers to have money to buy houses in urban areas.
On August 2, Liangshan, Sichuan, also made a decision to support farmers in buying houses. Each household that meets the requirements set by the government will be supported with 5,000 yuan (about 736 US dollars) to buy a house in the city.