According to the website of the Ministry of Finance, the General Office of the Standing Committee of the National People's Congress held a press conference on November 8, 2024, at which Lan Fo'an, Minister of Finance, introduced the policy of increasing the local government debt limit to replace the existing implicit debt, and answered questions from reporters. In addition to announcing the policy of replacing implicit debt in stock, Lanfoan also clarified two important incremental policies around the real estate sector. Lan Fo'an stated that currently, relevant tax policies supporting the healthy development of the real estate market have been approved according to procedures and will be launched soon. The Ministry of Finance is cooperating with relevant departments to study and formulate policy rules to accelerate the implementation of special bonds to support the recovery of idle stock land, the addition of land reserves, and the acquisition of stock commercial housing for use as affordable housing. The upcoming tax policies and special bond support measures by the Ministry of Finance aim to activate the market by reducing the tax burden on the real estate industry and providing financial support Yu Xiaoming, Senior Investment Advisor at Jufeng Investment Consulting, told Securities Daily reporters that these policies are expected to have a positive impact on the real estate market, including boosting market confidence, accelerating capital flow back to real estate companies, and stabilizing housing price expectations. In fact, at the press conference held by the State Council Information Office on October 12th, Lan Fo'an introduced a package of targeted incremental policy measures that will be launched one after another in the near future, including the "combined use of local government special bonds, special funds, tax policies and other tools to support the promotion of the real estate market to stop falling and stabilize". The Ministry of Finance and relevant departments are working together to focus on promoting the balance of supply and demand in the real estate market, continuously optimizing fiscal and tax policies, and promoting the real estate industry to return to a stable and healthy development track Vice Minister of Finance Liao Min stated at the aforementioned press conference that, in accordance with the decisions and arrangements of the Party Central Committee, the Ministry of Finance is urgently studying and clarifying value-added tax and land value-added tax policies that are linked to the cancellation of standards for ordinary and non ordinary residential properties. Next, further research will be conducted to increase support, adjust and optimize relevant tax policies, and promote the stable and healthy development of the real estate market. From the current tax policies related to real estate, including value-added tax, land value-added tax, and personal income tax policies, there is room for positive adjustment Yan Yuejin, Vice President of Shanghai E-house Real Estate Research Institute, stated in an interview with Securities Daily that it is expected to have a direct impact on reducing the tax and fee costs for landlords and real estate companies, which will have a positive effect on reducing housing transaction and development costs. From the perspective of policies surrounding special bonds, on the one hand, it allows special bonds to be used for land reserves, supporting local governments to use special bonds to recover eligible idle stock land, and in areas where there is a real need, they can also be used for new land reserve projects; On the other hand, we should make good use of special bonds to purchase existing commercial housing for use as affordable housing in various regions. Yan Yuejin believes that this actually clarifies the positive role of special bonds in optimizing stock. In terms of recycling idle stock land and converting it into land reserves, there are mainly two types of land, namely idle land for resettlement housing and undeveloped land for real estate enterprises. It plays a positive role in alleviating the risks in the field of urban village renovation and resettlement housing, as well as in the land inventory projects of distressed real estate companies, and effectively improves the land reserve and supply structure by 2025. Yan Yuejin further analyzed that two types of financial instruments, namely special loans for urban village renovation and re loans for affordable housing, have been actively implemented. The addition of special bonds will help digest land and housing inventory and promote supply-demand balance. Yu Xiaoming believes that purchasing existing commercial housing through special bonds for use as affordable housing can increase the supply of affordable housing, meet different levels of residential needs, and promote the stable development of the real estate market. These measures will not only help stabilize the real estate market in the short term, but also contribute to the stable and healthy development of the real estate market in the long run. (New Society)