In may 2026, the chinese real estate market came to a critical milestone. Following the 28 april meeting of the central political bureau, which set out to “strengthen efforts to stabilize the real estate market and firmly promote urban renewal”, the ministry of housing, the ministry of finance, the central bank, the general tax administration, the ministry of natural resources and the general directorate of state financial supervision made rare contacts and made a unified voice, with the formal and complete landing of a combination of municipal policies covering the demand side, the supply side optimized, the finance side increased, and the tax and revenue cut。
This is not a fine-tuning of short-term emergencies, but rather a strategy to re-engineer the city's development logic at the top, to address systemic risks in the industry and to secure housing for the population; rather than a single sector, it is a coordinated, multi-ministerial, multi-billion-funded, nationwide, systematic effort. The chinese building city, which has been undergoing four years of deep readjustment, has set off high-pressure regulation and has entered a new phase of development of “stable expectations, living stocks and livelihoods”, which has profoundly affected the allocation of assets and housing options for millions of families。
I. Policy winds change dramatically: from “strength stop” to “stable bottom” to give the strongest signal of stability
As the backbone of the national economy, real estate is linked to more than 180 industries upstream and downstream, directly related to economic stability and the security of the assets of millions of families. After nearly four years of deep adjustment, the market has long been under triple pressure from high stock levels, weak demand, and low confidence, with a tight financial chain for some housing enterprises, a heightened risk of project lockouts, a surge in second-hand market sales, and a vicious circle of “see-see-see-see-see-see” markets, backed by clear policy guidance and strong confidence。
The central direction of the city has evolved to convey a clear shift in policy direction:
• september 2024: “facilitating to halt the decline and stabilize the decline”, with an emergency stop to the bleeding and protection against the risk of a chain being triggered by rapid market downturns
• 2025: “careful risk management”, focusing on the prevention of systemic risks and the orderly disposal of housing company debt and stock
• 28 april 2026: “effort to stabilize the real estate market”, marking a historic leap from “risk control” to “stable development”, formally ending the logic of high-pressure regulation。
This time, the six ministries rarely share the same profile, breaking with the previous practice of fragmented policies in a single sector and releasing the strongest signal of a “one-size-fits-all country-wide market”. Its high specifications, intensity and coverage, which have been rare for almost a decade, have completely reversed market pessimism and built the foundations of a firm policy for the city to recover。
Two, six major ministries are working together to hit the market hard
The new deal has a “four cancellations, four cuts, two increases” as its central framework, with the untying of sales from restrictions, lower tax costs, increased financial leverage, and increased stock pool activity with four dimensions of precision, each of which directly strikes the market, and each of these policies is a matter of public security。
(i) ministry of housing and construction: full untying of the purchase restrictions and activation of the market
The ministry of housing and construction has explicitly introduced “four cancellations” throughout the country to completely break down the barriers to home acquisition:
1. Elimination of the restrictions on purchase: no distinction is made between local and non-resident domiciles, no social security, no tax requirements and freedom to purchase housing
2. Elimination of the restrictions on sale: the second-hand house is no longer subject to the age limit of the listed transaction and is readily available for listing and full mobility
3. Abolition of price limits: the price of new houses is priced by the market and the value of high-quality plots, the return of quality plots itself
4. Elimination of the general/non-family distinction: harmonization of house purchase standards and elimination of additional thresholds for improved house purchase。
At the same time, the ministry of housing and construction has taken the lead on the twin lines of “assembly stock” and “back-to-back” and local governments and state enterprises have been active in acquiring stock of eligible commodities for a variety of purposes, such as secure housing, talent apartments and housing. This has provided developers with valuable cash flows, accelerated repayments, and new stable housing sources in cities. Specific rules have been put in place in tianjin, suzhou and guangzhou to implement them quickly。
(ii) central bank + general directorate of financial supervision: financial support added and housing purchase threshold reduced to the lowest ever
The financial policy is at the heart of the new deal, which precisely reduces the cost of buying houses, expands the leverage for buying houses, and effectively reduces the demand for and improvement of groups:
• down payment: the national minimum down payment rate for the first and second suites has been reduced to 15 per cent, at an all-time low of 150,000 to the core city
• reduction of interest rates: the elimination of floor rates for housing loans at the national level, the autonomous pricing of commercial banks and the reduction of interest rates for many initial commercial mortgages to about 2. 5 per cent, which is historically low
• provident fund interest rate reduction: the interest rate on stock housing equity loans has been reduced to 2. 6 per cent for the first set for more than five years; the loan line has been increased, with a maximum of 1 million loans per person, 2 million loans per family in guangzhou, 1. 7 million loans per family in qingdao and 2 and 3 additional increases for families
• optimization of business transfers: cities such as guangzhou eased “business-to-business” restrictions and supported direct portfolio lending without having to cover the gap and further alleviate the monthly pressure。
(iii) ministry of finance + general directorate of taxes: full tax deduction, “sale of old and new” full dividend
Tax breaks directly reduce the cost of buying and changing houses, focusing on “selling old and buying new ones” and accelerating housing improvement and upgrading:
• reduction in tax rates: 1 per cent for the first and 2 flats of 144 m2 and 1. 5 per cent for the first and 2 per cent for the second and above, significantly reducing the burden of tax fees for the purchase of housing
• value-added tax relief: exemption from value-added tax on the external sale of housing after two years, reduction of the transaction costs of used houses and activation of the market in circulation
• tax refunds: repurchases within one year of the sale of the owner-occupied house, full reimbursement of the personal income tax paid and incentives for improvement of the replacement house
• financial assistance: the provision of support for the renewal of the city's debt will be expanded, with a maximum of 1. 2 billion yuan in fixed subsidies, 300 billion yuan in additional housing loans from the central bank, and hundreds of billions of dollars in the fund-carrying market。
(iv) ministry of natural resources: optimization of land supply and precision in matching market demand
The land end focus is “controlling increments, good stocks, quality”, providing precision supply support to the market:
• strict land addition control: reduce non-core regional land supply and avoid further backlogs
• focus on high-quality plots: priority supply of core plots with mature quality land to enhance the quality and value of new houses
• simplifying the approval process: accelerating the approval of old and urban renewal projects, shortening the start-up cycle and fast-tracking effective supply。
Iii. New deal landing, with four categories of people benefiting directly, and housing purchase window period reached
The new deal covered the entire chain of home purchases, which directly benefited the four categories of people in need, improvement, change of house, and investment (rational), with different groups of people finding suitable dividends, and the gold window period for house purchases officially opened。
(i) just-in-demand groups: low-threshold, low-cost, easy access to housing dream
For first-time home buyers, the new deal is described as “tailored”: 15 per cent down payment + 2. 5 per cent low interest rate + 1 per cent compulsory tax, significantly lowering the threshold and monthly supply pressure. In the case of just-in-demand housing, for a total cost of $1 million, the down payment would cost only $150,000 and about $4,000 a month, which is nearly a thousand dollars less than before, making it truly “affordable and affordable”。
(ii) improvement of groups: unrestricted, low-tax and low-pressure replacement
Two or three children, or an improvement in the size of a large household, would benefit from the elimination of the restrictions on sales, the full refund of taxes and the withdrawal of public funds, and a significant reduction in the cost of housing replacement. The sale of old houses for new ones, not only without trade restrictions, but also with the return of the tax on the sale, and the additional rise in the amount of the provident fund loan, is easily achieved as a “small for old for new”。
(iii) second-hand homeowners: mobility activation and property liquidation yes
The previous impasse in the “more and less” second-hand house market was completely broken: the elimination of the sales restrictions and the value-added tax (vat) credit had significantly increased the liquidity of second-hand houses. Both self-employment and the realization of assets can be quickly traded, leaving behind the “priceless” dilemma and the return of property value to a reasonable margin。
(iv) rational investors: value-added in core asset preservation leading to revaluation
The city of the building leaves high-pressure regulation and enters the stage of stable development, with high-quality properties in the core city, the core sector, once again becoming a high-quality option for asset value preservation. The market for the new deal is expected to be stable, liquidity restored, demand and supply balance for high-quality properties balanced, prices steadily rising, and rational investors are able to take control of the window period and deploy core assets。
Four to three: building-market logic is re-engineered
This multi-ministerial and intensive launch of the new deal is not a short-term stimulus, but a systematic re-engineering of the underlying logic of the building, which sends three core signals to read and understand in order to grasp future trends。
(i) the bottom line remains the same, with a “stable market” as the core objective
The policy has been consistent in its “house-to-house” orientation, and this break-in is in no way an incentive to fire, but rather to support legitimate self-sustaining needs and curb speculation. The elimination of restrictions on purchases and the reduction of taxes and fees are intended to meet immediate and improved real housing needs, while strict controls are imposed on the flow of irregular funds to the market and on house demolitions to ensure a smooth and healthy development of the market and to avoid major setbacks。
(ii) the age of stock from “de-inventory” to “assembly stock” is comprehensive
In the past, the city focused on “building new houses, going to stock” and now shifted to “capable stocks, optimizing supplies”. The acquisition of stock units by state enterprises for housing security purposes, the simplification of the second-hand house trading process and support for “selling old and new”, are all intended to activate the large stock of housing sources and increase the efficiency of housing use. Future city competitions are no longer “numbers of new homes”, but rather “habitation quality, co-location, service experience”。
(iii) the city of the building is tied to the depth of the economy, and stabilization of the city is the stabilization of livelihoods
Real estate is linked to more than 180 industries upstream and downstream, directly leading to the development of a wide range of industries, including construction materials, renovations, household appliances and property, and absorbing large numbers of jobs. The stability of the city is not only about the economy, but also about the financial security and well-being of millions of families. This time, multi-ministerial efforts have been made to achieve the twin objectives of “stable economy and livelihood” by stabilizing the city, leading to economic recovery and ensuring the well-being of the population。
V. Writing to home buyers: rationally grasping the window period and avoiding the three faults
While the new deal is well established and market confidence gradually recovers, home buyers need to look at the dividends rationally and take advantage of the window period while avoiding three common areas of error and pitfalls。
(i) mistake i: blindness and neglect of one's strength
The new deal has lowered the threshold for house purchases, but still needs to be affordable. The low down payment and low interest rates should not lead to the blind purchase of properties that exceed their own capacity to pay, avoiding excessive monthly stress and reduced quality of life. Precedence is given to a controlled, mature, comfortable home and rationally planned budget。
(ii) mistake ii: dismantling the wind, neglecting the policy base line
The bottom line of the “homeless house” has never wavered, and there will eventually be a risk of speculation. The new deal supports a reasonable need for self-sustainment, but maintains a high level of pressure on house-opening, scrutiny of irregular funds and tight controls on speculation. Do not have the illusion of being rich in firehouses, and take a rational view of the value of the property, which is supported by home ownership and investment。
(iii) misdirection iii: price only, quality ignored and matching
The market is warming up, and some housing companies may introduce a “low drive” to attract eyeballs, but the low price is not equal to quality. The purchase of housing should not be based solely on price, but rather on the core elements of building quality, developer power, property level, perimeter support (school, hospital, metro, business). Priority is given to state-owned enterprises and quality housing schemes developed by zong, avoiding the purchase of “problems” for small-scale housing enterprises and preventing the risk of lockouts and tailings。
At the end of the day: when the city has a steady signal and is secure
From the tone of the central political bureau meeting to the unified, compact policy mix of six ministries, in may 2026, the building city really came up with a “point of light”. The era of high-pressure regulation has come to an end, with “stable expectations, living stock, good livelihoods” becoming a new thread that needs to be sustained, improved, dividends and market dynamism。
For millions of families, housing is not only a living space but also an important vehicle for asset security and well-being. Today, the threshold for house purchases has fallen to historical lows, the cost of taxes and fees has been significantly reduced, and the market is expected to become more stable, just as the golden window has just become necessary to get in the car, improve the replacement of houses and rationalize the distribution of core assets。
There is no eternal winter in the city, and there is no eternal party. The fall of the new deal is not a sign of a boom in the city, but a starting point for smooth and healthy development. The rational management of the policy dividend, the selection of suitable housing sources in combination with their own needs, and the non-blindness, incognito and non-speculation are necessary to realize the dream of secure tenure and secure assets in the new phase of the building。
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