real estate Photo: Xinhua

A Communist Party of China (CPC) leadership meeting held on Thursday emphasized the importance of stabilizing the property market. Experts and agents said the meeting has instilled confidence in the property market, and this renewed optimism is expected to drive growth in transactions during the upcoming National Day holidays.

The Political Bureau of the CPC Central Committee held a meeting on Thursday to analyze and study the current economic situation and make further arrangements for economic work, the Xinhua News Agency reported.

The meeting emphasized the importance of stabilizing the property market. Key points included the need to strictly control the increment of construction of commercial housing, optimize the existing housing stock, improve the quality, increase loan support for "white list" projects and revitalize idle land.

It also stressed the need to respond to people's concerns, adjust the housing purchase restriction policy, reduce the interest rate of existing mortgage loans, and promptly improve land, fiscal, tax and financial policies to promote a new model of real estate development.

The meeting offered a clear signal and a boost to the Chinese property market, which has been undergoing a correction in transactions and prices, Yan Yuejin, deputy director of the E-house China R&D Institute in Shanghai, told the Global Times on Thursday.

"We anticipate that some cities will take proactive steps in relaxing purchase restrictions and lowering existing mortgage rates in the near future," Yan said.

Wang Guoxiang, a property agent based in Shenzhen, South China's Guangdong Province, told the Global Times on Thursday that the emphasis on stabilizing the property market has provided considerable confidence to the market. It is likely to shift the bearish sentiment in the property market and boost potential buyers' willingness to purchase. 

The meeting, coupled with the policy dividends announced on Tuesday - including a cut in existing home mortgage rates and a reduction in down payments for purchasing a second home - has further bolstered sentiment. 

"With these favorable policies in place, homebuyers face reduced pressure from down payments and monthly interest payments. This will effectively expand the customer base, leading to an increase in the number of homebuyers," Wang said.

As the National Day holidays approach, the number of clients who have scheduled home viewings is growing. Daily online inquiries have increased significantly, with about ten groups of clients each day, Wang added.

China will lower mortgage rates on existing home loans to levels similar to those of newly issued housing loans. The average reduction in mortgage rates for existing home loans is expected to be about 0.5 percentage points, the Xinhua News Agency reported. 

This move is expected to reduce total interest expenses for households by about 150 billion yuan ($21.39 billion) per year on average, which will help boost consumption and investment.

The minimum down payment ratio for both first and second homes will be unified, with the nationwide minimum down payment ratio for second homes to be reduced from 25 percent to 15 percent.