China Leadership Monitor

The Turning Point in Housing

Monday, June 28, 2010

China reached an important turning point in housing policy on April 17, 2010. Policy shifted from stimulating growth to controlling speculative demand for housing, as well as increasing the supply of affordable housing. The central government has pushed the policies on reluctant local government officials, who are dependent on land-sales revenues and closely intertwined with real estate interests. Despite the tensions in implementation, central government commitment to the policy turn appears strong, and it is likely it will be sustained.