As of June 11, local governments have issued 108.35 billion yuan ($15 billion) in land reserve special bonds across 442 projects, marking a significant ramp-up in fiscal support for the property sector. Notably, 7.75% of this year’s newly issued special bond funds were explicitly allocated to land reserves, reflecting targeted efforts to stabilize land markets.
The accelerated bond issuance aims to address dual priorities, according to Zhu Hualei, senior analyst at Jufeng Investment. First, it provides liquidity to local governments for land acquisition and development, helping to prevent market volatility. Second, it improves land-use efficiency by directing resources to high-demand areas, particularly in cities facing housing inventory pressures.
This policy tool’s expansion underscores Beijing’s calibrated approach to reviving real estate—avoiding broad stimulus while addressing systemic risks. With land sales being a key revenue source for local governments, the bond surge may also ease fiscal strains. However, analysts caution that sustained recovery hinges on broader demand-side measures and developer financing reforms.
Related topics:
