People view the sandbox model of a real estate project in Taiyuan, North China's Shanxi Province, on June 17, 2024. Photo: VCG

China will roll out more incremental policies to boost the real estate sector, from including all eligible real estate projects in the "white list" mechanism to enhancing support for urban village and dilapidated housing renovation projects, Ni Hong, minister of housing and urban-rural development, said on Thursday. 

Experts noted that the incremental policies will play a significant role in stabilizing and promoting a rebound in the real estate market in the fourth quarter and beyond, and the "white list" mechanism will further enhance homebuyers' confidence, as the delivery timeline and housing quality are guaranteed.

Speaking at a press conference, Ni noted that the approved loans for "white list" projects will reach 4 trillion yuan ($561.3 billion) by the end of this year, and all eligible housing projects will be included and their reasonable financing needs will be met through loans.

As of Wednesday, loans approved for the "white list" real estate projects had reached 2.23 trillion yuan, Xiao Yuanqi, a deputy head of the National Financial Regulatory Administration, said at the press conference.

The mechanism is part of China's efforts to stabilize the sector, which is weighed down by debt problems, and to boost confidence in an industry that accounts for nearly 6 percent of GDP. Under the "white list" mechanism launched in January, local authorities are recommending that financial institutions provide support to eligible real estate projects.

Yan Yuejin, a vice president at Shanghai-based E-house China R&D Institute, told the Global Times on Thursday that the "white list" mechanism is closely tied to alleviating the financial burdens of property developers.

The policy will enhance homebuyers' confidence, as the delivery timeline and housing quality are guaranteed. As a result, this will not only help shore up market confidence but also foster sustained market growth, stabilizing the real estate sector and reversing its decline, Yan noted.

Ni said that the government will also step up support for urban village and dilapidated housing renovation projects, adding that China will complete the renovation of an additional 1 million such housing units by providing monetary compensation to residents.

Yan said that the incremental policies will play a significant role in stabilizing and supporting a rebound in the real estate market in the fourth quarter and beyond.

In a bid to prop up the housing market, Chinese authorities in late September ordered cuts in mortgage rates for existing loans, as well as lower down payment ratios and relaxed purchase restrictions.

Since the release of the relevant policies, declines in major indicators such as investment in real estate development and sales of newly built commercial properties continued to narrow. In particular, since the end of September, there has been a marked increase in the number of viewings, visits and signing of contracts for new properties, and the volume of transactions for secondhand properties continued to rise, resulting in positive changes in the market, Ni noted.

Efforts to ensure housing deliveries across the country have been effective, with 2.46 million housing units already delivered so far, Ni noted.

 This has significantly reassured homebuyers and noticeably shifted market expectations, Ni said.

China's real estate market has started to rebound after three years of adjustments driven by various policies, and figures for October are expected to reflect a positive and optimistic trend, Ni noted.