China’s monetary policy is expected to remain prudent in 2021 and will provide a more favorable financial environment for economic recovery, as announced by theChinaIndex Academy (CIA), a Beijing-based real estate research institute. At the same time, it stated that in 2021China’s real estate market will see average prices rising steadily, while new areas covered byconstructionactivity will remain at high levels and investments in real estate will indicate medium-to-high growth.
According to the CIA, the new urban population inChinain the 2021-25 period will total 84.33 million, which will result in the new demand totaling 3.6 billion square meters of housing area. In addition, housing renovation, demolition and relocation will contribute to the demand for housing areas. It is expected that demand for housing areas inChinawill reach 9.46-9.84 billion square meters in the 2021-25 period, which indicates that the country’s real estate industry will maintain a decent pace of development.