Trade-in housing models to stabilise China's housing market

At a policy briefing on the Binzhou Integrated Real Estate Policy Package held by the Information Office of the Binzhou Municipal Government on August 10, officials outlined the progress of the city’s housing "trade-in" initiative.

As a strategic move to unlock demand for housing upgrades, revitalise existing housing stock, and boost market vitality, six municipal departments have jointly rolled out the Implementation Plan for Housing "Trade-In" Programs (Trial). The plan deploys four core mechanisms of developer-led buybacks, state-owned enterprise bulk acquisitions, agency-assisted sales, and demolition-renewal to systematically deliver a streamlined property swap service.

To date, Binzhou has rolled out 37 real estate-related policies alongside the housing "trade-in" implementation plan, launched nine promotional campaigns, and fast-tracked six premium projects onto a financing "white list," injecting fresh vitality into the market. From January to July 2026, the growth rate of commercial housing sales area in Binzhou ranked second among all prefecture-level cities in Shandong Province, signaling a steady recovery in market confidence.

On the funding front, Binzhou has seized opportunities presented by national policy funding programs, securing 180 million yuan to acquire 600 existing units for conversion into affordable housing. In addition, housing rental subsidies of 880,000 yuan have been disbursed, benefiting 510 low-income households. In terms of shantytown renovation resettlement, 5,129 units have been delivered, and three projects have been included in Shandong Province's first batch of priority financing programs with a combined application of 1.96 billion yuan. These measures have alleviated fiscal pressure, ensuring relocated residents can move into their new homes on schedule.

Binzhou authorities said they will continue to use the housing "trade-in" initiative as a key policy tool to refine its policy framework, and foster a healthy and orderly real estate market that better addresses the diverse housing needs of its residents.