Amid property crisis, China must shift from ‘availability’ to ‘quality’, premier urges
Latest comments show how China’s leadership aims to ‘leverage technology’ and embrace modern advancements to fuel urbanisation drive and boost economy
Premier Li Qiang says China needs to build high-quality smart homes to better cater to residents’ needs while accelerating the renovation of ageing housing units amid a modern urbanisation drive that could potentially drive trillions of yuan worth of investment and consumption.
During his appearance at a construction technology exhibition in Beijing on Monday, Li said that housing construction and renovations should take into account the diverse needs of different demographics, including elderly residents and children, and consider factors like living habits, age and economic capabilities.
“Currently, China’s housing development is shifting from simply addressing ‘availability’ to focusing on ‘quality’,” Li was quoted as saying by Xinhua.
China is stepping up efforts to revive its economic growth, which has been dragged down by a property crisis, the tightening financial positions of local governments and weak consumption confidence. Authorities have cut mortgage rates, relaxed requirements to buy houses, and unveiled plans to absorb housing inventories, on top of other economic stimulus measures to address debt woes and shore up confidence.
“We must leverage technology to ensure new homes are of high quality while also using scientific renovations to transform older properties into homes that meet modern standards,” Li said.
Every percentage-point increase in China’s urbanisation rate can drive trillions of yuan worth of new investment demand and more than 200 billion yuan (US$27.6 billion) worth of consumption demand, said Li Chao, a spokeswoman for the National Development and Reform Committee (NDRC), during a press conference on Tuesday.
