Shenzhen Launches Program to Buy Unsold Homes

Shenzhen, one of China's major cities, is embarking on a groundbreaking initiative to purchase unsold apartments for conversion into affordable public housing, responding to a protracted property market downturn. The Shenzhen Public Housing Group will solicit proposals from developers until the end of October, with the goal of reselling or renting these units at reduced prices. This program marks Shenzhen as the first tier-1 city in China to implement such a comprehensive plan following a central government call for local authorities to address housing inventory issues. Analysts suggest the initiative may bolster the struggling property sector temporarily, but concerns remain about the program's scale and effectiveness in significantly alleviating the housing surplus. The plan is supported by a 300 billion yuan fund made available by the central bank, which is expected to facilitate further credit support for state enterprises involved in the program. Other cities, including Beijing and Guangzhou, are also exploring similar measures to tackle their housing challenges, indicating a broader trend in China's real estate strategy.