Government Work Report highlights real estate stability

Government Work Report highlights real estate stability and introduces a new approach to macroeconomic regulation.

This year’s Government Work Report introduces a novel approach to macroeconomic regulation by the central government, marking the first time that stabilizing the property and stock markets has been explicitly included in the overall economic strategy for 2025, an official stated on Wednesday.

According to Chen Changsheng, a member of the Government Work Report Drafting Team and deputy director of the State Council Research Office, this innovative macroeconomic policy aims to create a positive cycle between economic growth and improvements in people’s livelihood. It also seeks to balance high-quality development with stability in growth and employment. Speaking at a press briefing on the Government Work Report delivered at the NPC session, Chen highlighted that asset prices are now recognized as a key component of macroeconomic regulation, with real estate and stock market stability formally incorporated into policy goals.

Discussing measures to ensure a moderate rise in prices, Chen emphasized the need for stronger efforts to stabilize the real estate and stock markets. He explained that these sectors are vital indicators of economic performance, with real estate being the largest component of household wealth. By stabilizing these markets, a “wealth effect” can be generated, boosting consumption and supporting a moderate rise in consumer prices. The report sets the consumer price index (CPI) growth target at around 2 percent for 2025.

Yang Delong, chief economist at Shenzhen-based First Seafront Fund, stated that improvements in the stock market can directly generate a wealth effect, benefiting over 200 million stock investors and increasing household income, thereby stimulating domestic consumption. Since the policy shift on September 24, 2024, China’s stock market has experienced sustained volume-driven rallies, with daily trading volume increasing from approximately 500 billion yuan ($68.9 billion) to over 1 trillion yuan, signaling stronger investor confidence.

Regarding real estate, the Government Work Report emphasized continued efforts to halt the downturn and restore stability to the market. It outlined plans to enhance building standards and regulations to ensure the construction of high-quality homes that are safe, comfortable, eco-friendly, and smart.

For the first time, the term “quality homes” was featured in the report, reflecting a shift towards improving housing conditions. Yan Yuejin, research director at Shanghai-based E-House China R&D Institute, noted that this demonstrates the real estate sector’s solid foundations, bolstered by efforts made in 2024. He added that the promotion of high-quality housing aligns with urban planning improvements, as such homes require enhanced urban management systems.

Chen further highlighted that the Government Work Report places a strong emphasis on improving people’s livelihoods, allocating more policy resources to benefit the public. As part of its innovations, the report challenges the traditional view that consumption is a slow-moving factor in economic growth. Instead, it stresses the importance of stimulating domestic consumption while expanding investment, ensuring a balanced and sustainable economic trajectory.