China’s housing authority has joined a government plan to convert unsold commercial homes into affordable housing to combat the ongoing property crisis. Despite the initiative, some indebted urban areas may struggle to raise the necessary funds for the conversion.
The Ministry of Housing and Urban-Rural Development has mandated local authorities to acquire existing commercial homes, emphasizing the importance of addressing actual demand, inventory levels, and real estate market conditions.
While the efforts aim to destock unused properties and increase affordable housing supply in disadvantaged areas, challenges remain in securing the necessary financing, according to analysts.
Overall, these conversions are seen as a modest step towards alleviating the property market strain, with experts highlighting the need for additional measures to address the underlying issues.