In his speech at the National People's Congress (NPC), Premier Li Qiang announced that the Chinese government is developing a new model for the housing market, according to the Associated Press News.
This model aims to address China's real estate crisis, characterized by millions of buildings that remain unoccupied and empty.
The Chinese construction industry has been a significant driving force of the country's economy, previously contributing to approximately a quarter of China's GDP, Bloomberg reports.
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The announcement comes at a time when Chinese consumers are significantly impacted by the real estate crisis. According to Danmarks Radio, it is estimated that two-thirds of the population owns at least one property. Therefore, a decline in property values directly affects the financial security and savings of the population.
A key component of the new plan includes using public funds to purchase some of these unused properties to convert them into affordable housing.