Lian Ping: It is expected that by the middle of the "Twelfth Five-Year Plan" period, the prices of new houses in large cities may stop falling.

Lian Ping, Dean and Chief Economist of the Chief Industry Research Institute, as well as Chairman of the China Chief Economist Forum, stated that during the "Fifteenth Five-Year Plan" period, under the support of housing policies, the extent of further decline in housing prices may narrow. It is estimated that on average, new house prices will decrease by 1% year-on-year, and second-hand house prices will decrease by 2% year-on-year, with the decline narrowing by 1.5 and 2.5 percentage points respectively compared to the "Fourteenth Five-Year Plan" period. The pressure on housing prices in the first half of the "Fifteenth Five-Year Plan" may be relatively greater, while the decline in the second half is expected to slow down or even stabilize, and housing prices in major cities may stabilize and rise. It is expected that by the mid-term of the "Fifteenth Five-Year Plan", new house prices in major cities may stabilize, and the decline in second-hand house prices will be within 1%. The main factors supporting the prices of new houses in major cities are the better satisfaction of buyers' demand, relatively low inventory of available homes for sale, and rising land prices.