By Wang Wei & Shao Ting, Institute of Market Economy, DRC

Research Report No.62, 2018 (Total 5337) 2018-4-8

Abstract: China’s real estate inventory buildups boomed mainly from 2010 to 2014 when the number of new housing starts was substantially increased. In accordance with the overall deployment of the supply-side structural reform, significant headway was made in cutting excess inventory respectively in 2016 and 2017, and the stock pressure of most cities has been greatly relieved. But some third- and fourth-tier cities and counties in the northeast and northwest regions still have a large housing stock of residential homes and the number of office and commercial buildings is slowly reduced. With regard to future destocking work, we need to be aware of the fact that the housing market has reached an aggregate supply-demand balance with some regional market looming up some differences. Viewing from the goal of promoting the dynamic balance of housing supply and demand and the long-term healthy development of the market, some new destocking policies need to be adjusted in time, and efforts need to be focused on the development trend of the rental market to revitalize the housing stock assets, adjust and improve the corresponding statistical caliber of inventory buildups and better leverage their role in providing early warning and monitoring for the development of real estate market.

Key words: real estate, destocking, the new stage