On August 18th, the 9th plenary session of the State Council emphasized the need to effectively unify thoughts and actions with the scientific judgment and decision-making deployment of the Party Central Committee on the situation, consolidate and expand the momentum of economic recovery, and strive to achieve the annual economic and social development goals and tasks. It is worth noting that in the real estate sector, it is proposed to take effective measures to consolidate the trend of stabilizing the real estate market, promote the transformation of urban villages and dangerous old houses in conjunction with urban renewal, and release the demand for improvement through multiple measures. Chen Wenjing, Director of Policy Research at Zhongzhi Research Institute, stated in an interview with China Net Finance that bringing up real estate again at this meeting means that stabilizing the real estate market still plays an important role in stabilizing the macro economy. The goal of "stopping the decline and stabilizing the market" remains unchanged, which sends a positive signal and is conducive to stabilizing market expectations. In the future, policies supporting real estate are expected to be further strengthened, and the renovation of urban villages and dilapidated houses, as well as the release of improvement demand through multiple measures, will be the focus of policy efforts. 'Stopping the decline and stabilizing' remains the goal, and a new round of policies is expected to be launched. After the Politburo meeting of the CPC Central Committee on July 30th, 'real estate' was mentioned again, releasing a positive signal and further clarifying that 'stopping the decline and stabilizing' is still the goal of real estate policies, which is conducive to stabilizing market expectations. From a data perspective, according to the National Bureau of Statistics, the sales area of newly-built commercial housing in China in July was 57.09 million square meters, with a sales revenue of 532.5 billion yuan, a decrease of 46% and 48% respectively compared to the previous month. In July, the newly started construction area of houses was 48.42 million square meters, a decrease of 32.6% month on month and 15.4% year-on-year. In July, the sales prices of commercial residential properties in various first tier cities decreased month on month. The sales prices of newly-built commercial residential properties in first tier cities decreased by 0.2% month on month, and the sales prices of second-hand residential properties in first tier cities decreased by 1.0% month on month. When the newly constructed housing area exceeds the sales area of newly built commercial housing during the same period, the real estate market can be considered to have truly achieved a rebound from decline. ”Li Yujia, Chief Researcher of Guangdong Housing Policy Research Center, said. In Li Yujia's view, easing the current simultaneous decline in both quantity and price is to alleviate the disorderly rise in the number of second-hand housing listings and the disorderly decline in listing prices. On the other hand, it is to alleviate the disorderly price competition among developers and unify the management and regulation of the supply and demand of new and second-hand houses. He suggested implementing management on the listing price of second-hand houses in the next step. It is worth mentioning that in terms of policies, Beijing took the lead in implementing and optimizing real estate policies in early August, adjusting and optimizing purchase restrictions policies, and increasing support for housing provident fund policies. Chen Wenjing expects that in the future, Shanghai and Shenzhen may follow up and optimize their purchase restriction policies, and more cities will implement real estate support policies. Chen Wenjing also stated that the meeting proposed to "respond to market concerns in a timely manner and stabilize market expectations". It is expected that there is also room for further policy support at the central level, and a new round of supportive policies is expected to be launched. In addition, in the context of traditional market rescue policies, Li Yujia believes that the current problems in the real estate market are largely fundamental issues. He suggested comprehensively repairing the fundamentals and actively implementing fiscal policies to assist new citizens, young people, newly employed college students, and people of childbearing age. More supporting policies for urban renewal work may be implemented. This conference clarifies the need to promote the transformation of urban villages and dilapidated houses in conjunction with urban renewal, and to release improvement needs through multiple measures. Yan Yuejin, Vice President of Shanghai E-house Real Estate Research Institute, believes that from the perspective of taking effective measures in the next step, more attention should be paid to the series of work such as urban village renovation. Since the beginning of this year, the central government has repeatedly emphasized the importance of urban renewal. The Central Urban Work Conference and the Political Bureau meeting of the Communist Party of China Central Committee on July 30th both emphasized the need for high-quality urban renewal. We need to do a good job in urban renewal, especially in the renovation of urban villages and dilapidated houses. ”Yan Yuejin analyzed that the new round of urban village renovation will not only accelerate, but also expand the scale, which is the content that real estate work should pay close attention to in the second half of the year. Yan Yuejin also pointed out that such work is directly related to the release of improvement needs. Previously, Hainan had issued policies clarifying that in some high inventory areas, the use of house tickets will be explicitly stated in the subsequent renovation of urban villages. This means that the working mechanism of "urban village renovation - use of house tickets - release of improved demand - digestion of new house inventory" is more clear. Chen Wenjing also mentioned that in the process of renovating urban villages and dilapidated houses, strengthening monetization or housing ticket placement, and collecting and storing existing commercial housing for resettlement purposes will also provide important support for real estate sales. It is expected that relevant funding points will be further unblocked. Zhang Bo, the director of 58 Anjuke Research Institute, believes that urban renewal is an important lever at present. We will orderly promote the transformation of urban villages and dilapidated houses, and use innovative financial tools such as REITs and special bonds to attract social capital in fundraising. At the same time, a multi pronged approach is being taken to release improvement demands, accurately matching the needs of different groups such as replacement and quality improvement, and providing targeted products and services. Multi pronged release of improving demand policies from both supply and demand sides may work together. This meeting mentioned "multi pronged release of improving demand". Yan Yuejin believes that its core meaning is "coordinated promotion through multiple channels and ways", emphasizing the comprehensiveness and flexibility of strategies, which is a very important proposition and requirement for policy direction in this conference. From the supply side, increasing the supply of high-quality housing and guiding the demand for improved housing into the market through "good houses" is an important way. Chen Wenjing predicts that more cities will establish "good house" standards, improve capacity accounting rules, and encourage enterprises to provide more high-quality housing by reducing taxes and fees. From the demand side, Chen Wenjing expects that multiple measures have room for improvement: firstly, by increasing the amount of housing provident fund loans, reducing the down payment ratio of housing provident fund, and increasing housing subsidies, more support will be given to families with multiple children to purchase houses, lowering the threshold for purchasing houses and improving their purchasing ability; Secondly, we will increase support for housing "trade in" programs, and more cities are expected to improve supporting measures and smooth the supply chain of primary and secondary housing; Thirdly, provide larger housing provident fund and purchase subsidies to families who purchase green buildings, prefabricated buildings, etc., further stimulating the release of demand for improved housing. The multi pronged approach to work is essentially aimed at more effectively promoting the release of demand for improvement. ”Yan Yuejin stated that this requires not only leveraging a series of work such as urban villages, but also combining policy support for areas such as second homes in various regions, while finding new breakthroughs in areas such as second-hand housing. Recently, the government has issued multiple policy measures to invest in people, which will unleash the potential of real estate from the population side. Including the provision of childcare subsidies, exemption of kindergarten senior class childcare and education fees, etc., it is expected to reduce the burden on families and promote the increase of fertility rate. In the future, more policies that invest in people will be implemented, which is expected to further improve people's consumption ability, and the importance of housing in serving people's livelihoods may be further highlighted. ”In Chen Wenjing's view, in this process, implementing the "headcount supplement" policy for the population in need of protection may also be an important direction, increasing the subsidy for housing purchases, promoting housing consumption. If the housing subsidy is combined with the housing ticket policy and the "housing ticket land ticket" chain is opened up, it will be conducive to further promoting the real estate industry to enter a new cycle. (New Society)