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The positive growth of overall sales of China's real estate industry in the first ten months shows the active effects of the supportive policies, according to a Chinese official, Xinhua News reported on Saturday.

Data showed that the positive effects of supportive measures like recognizing households with mortgage records rather than local property ownership as first-time homebuyers, favorable down payments and lower mortgage rates have kicked in to stabilize the property sector, Ni Hong, Minister of Housing and Urban-rural Development, said in an interview with Xinhua.

The overall transaction volume of new and second-hand homes in China achieved a year-on-year positive growth from January to October, despite the sales of new housing has declined during the same period.

As of November 8, more than twenty cities, including Shanghai, Zhengzhou, Chengdu, Hangzhou, have implemented the policy of "recognizing households with mortgage records rather than local property ownership," according to financial news outlet China Securities Daily.

The solid progress in ensuring overdue housing projects were completed and delivered has driven a nearly 20 percent year-on-year increase in the completed area of housing nationwide, reflecting the effectiveness of local governments' efforts to assist businesses in overcoming challenges, Ni said.

The real estate market has solid support for future sustained development, Ni said.

The recent Central Financial Work Conference proposed accelerating the construction of the "Three Major Projects," which included affordable housing. This is a major decision and deployment made by the central government in response to the new situation in the real estate market. Relevant work has already been initiated, Ni noted.

China's real estate market is undergoing a period of transformation. Although it has encountered some difficulties, there is still solid support for its future sustained development, the official noted.

With the continuous implementation of various central government decisions and the gradual establishment of new models for real estate development, it is certain that the real estate sector will be propelled toward transformation and upgrading, achieving high-quality development, Ni said.

To build a new model for real estate development, we must adhere to the positioning that "houses are for living in, not for speculation" and equally to meet the reasonable financing needs of different types of real estate enterprises, promoting a virtuous cycle between finance and real estate, Ni emphasized.

Global Times