Local Governments around China Call for Public Institutions to Buy up Commercial Housing

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Local governments around China have issued directives calling for both public and enterprise organisations to buy up commercial housing, in a bid to stabilise the market and stem rapid price declines.

These local governments have included Changchun in Jilin province, Bazhong in Sichuan province, Huanggang in Hubei province, and Pu’er in Yunnan province, all of which have issued “real estate stabilisation policies” calling for public institutions and large-scale enterprises to arrange for group housing purchases.

“Multiple locations have clearly encouraged group buying conduct, which fully indicates that there is guidance to use group purchases to stimulate real estate market transactions,” said one source to Securities Journal. “This will be of help to invigorating prices on the real estate sales market in future.”