On December 3, the State Council conducted its 17th special study on the theme of "Deepening the Development of New Urbanization People as the Center, and Focusing on Building a New Pattern of Integrated Urban and Rural Development." Premier Li Keqiang of the State Council emphasized the need to thoroughly implement urban renewal action, combine urban renewal with eliminating safety hazards, stabilizing the real estate market, and other tasks, and solidly promote the construction of good houses and high-quality of the real estate industry.

In the author's view, the signal released by this special study, which once again mentions "stabilizing the real estate market, is worth contemplating. New urbanization is still an important strategy to promote economic growth and expand domestic demand in the future, and "stabilizing the real estate market" is by means a temporary measure for short-term regulation. Its deep-seated connotation is to become an important support for the new urbanization strategy. In the future, it to be transformed into a key lever to promote the quality improvement of urbanization and expand the potential of domestic demand, so that the real estate market can form a benign interaction with population and industrial upgrading.

First, the "stabilizing the housing market" and "good homes" initiatives complement each other, meeting the new demand for living consumption.
At present, China's urbanization development is transitioning from scale expansion to quality enhancement. The demand for urbanization of agricultural migrants and the demand for housing form the basic market of the real estate market. The "good homes" initiative is an important driving force to meet these diverse needs and enhance market vitality.
With implementation of national standards such as the "Residential Project Specification," "safety, comfort, green, and smart" have become the core demands of housing consumption. Local have also issued local standards to respond to this trend. Some cities have clarified a 10-year warranty for waterproofing projects, and some have listed high-altitude falling protection as a "veto item." Localities are gradually increasing the supply of "good homes" to activate the demand for improved housing with high-quality supply.
, a series of "stabilizing the housing market" policies that have been continuously implemented have opened up space for "good homes" transactions. In particular, Beijing, Shanghai, Shenzhen have all adjusted and relaxed their purchase restrictions, becoming policy benchmarks for local "stabilizing the housing market." According to CRIC statistics, in the first three of this year alone, local governments have introduced 556 stable market policies around dimensions such as purchase restriction relaxation, housing provident fund relaxation, commercial loan optimization, and support for talents to alleviate market adjustment pressures and meet reasonable housing needs. In the future, "good homes" are expected to continue to support new housing market transactions, form new price, promote the real estate market to form a new dynamic balance of supply and demand, and stabilize the total demand scale of the industry
Second, the "stable property market" resonates with urban renewal, exploring new paths for the development of new urbanization.
At, urban renewal is gradually evolving from a pure old-style renovation project to a core task of new urbanization, which can not only activate market vitality through stock upgrading but also with the construction of "good houses" to jointly build a new model for real estate development.
On the one hand, looking at the process of urbanization in China, are more than 30 billion square meters of stock housing in China's cities that need to be updated and renovated, and there is a large space for new demand. On other hand, combining the transformation of urban villages, the renewal of old and dangerous houses with the release of housing demand can not only eliminate safety hazards and improve urban functions but also effectively inventory and stabilize expectations.
More importantly, urban renewal is reshaping the logic of real estate development, that is, from "building houses" to "creating space" by making up for the shortcomings of supporting facilities and improving the value of property, so that houses can return to the price anchor of residential attributes. This "stock upgrading" development model precisely the inevitable requirement of new urbanization for the real estate industry.
Third, the “stabilizing the property market” and the deleveraging of property enterprises are reinforcing each other, the risk resolution and transformation of the industry.
At present, the liquidity pressure of property enterprises is still a prominent problem for the industry to resolve risks, while the “stizing the property market” policy has created favorable conditions for the deleveraging work by activating transactions and expanding financing channels. For instance, at the demand end, the release of demand for essential housing and upgraded housing is realized by reducing the down payment ratio and mortgage interest rates; at the supply end, innovative policies such as the “whitelist” loan approval and the “purchase-construction” of public housing help enterprises adjust the inventory structure and alleviate the funding pressure, thus creating conditions for debt restructuring.
More importantly in order to relieve the liquidity pressure of enterprises other than the risk-prone ones, infrastructure REITs have been expanded to the field of urban renewal, providing enterprises with a-term low-cost financing channel; the redemption mechanism of the house note system allows developers to quickly recover funds. Of course, the progress of deleveraging of property enterprises also to regulate market order, promote enterprises to shift from scale expansion to quality improvement, and cultivate market entities that are more suitable for the needs of high-quality development, providing a longterm guarantee for the stability of the property market. This virtuous cycle of “policy support-market activation-risk resolution” is exactly where the deep value of “stabil the property market” lies.
Looking forward, under the development framework of new urbanization, the “stabilizing the property market” policy will continue to advance. This not only the key for the industry to stop the decline and stabilize in the short term, but also the fundamental for its long-term steady and long-term development. In the, the real estate industry will gradually complete the transformation to a new development model of “high quality, low risk and sustainable”, achieving high-quality development