(Yicai) Oct. 26 -- China has reiterated the need to optimize fiscal, tax, social security, and housing support measures for families in a bid to stabilize the number of new births, as well as to continue improving policies on marriage, childbirth, parenting, and education, according to the State Council executive meeting on Oct. 23.

The relevant policy chain has gradually taken shape, from a 2022 document calling for housing support to be tilted toward multi-child families and localities to step up support for such families buying homes by 2024, to this year's Government Work Report calling for strengthened housing support for newlyweds and first-time parents, said Li Yujia, chief researcher at the Guangdong Urban and Rural Planning and Design Institute's Housing Policy Research Center.

Housing support needs to be paired with other major costs young people face across childbirth, parenting, and education, including employment, maternity leave, paternity leave, and child-rearing and schooling expenses, Li stressed.

"Many cities have set tiered loan quota increases for families with a second or third child, which, combined with the nationwide cut in first-home provident fund loan rates, has meaningfully eased the long-term mortgage burden on multi-child families," said Zhang Bo, president of the 58 Anjuke Research Institute.

At the local level, policies on housing provident funds, home-purchase subsidies, and affordable housing allocation have been rolled out in quick succession. Hangzhou recently allowed a 60 percent increase in loan limits for multi-child families, while Beijing raised quotas by CNY400,000 (USD59,900) and Shanghai by 20 percent, with similar policies implemented in Wuhan and other cities.

In addition, Qingdao in eastern Shandong province offered subsidies of CNY50,000 and CNY100,000 (USD7,500 and USD15,000) to families with a second or third child, respectively, buying homes between April 1 last year and June 30 this year. Qianjiang in southern Hubei province offered a purchase subsidy of CNY200 (USD30) per square meter to first-child families that comply with birth policies.

Industry insiders said China's latest move signals a shift in real estate policy from a purely economic tool to one that serves the country's population strategy. Support will likely continue extending to newly married families and first-time parents, according to experts.

Affordable housing allocation and home-purchase eligibility have also been adjusted in families' favor. For example, Fuzhou in southeastern Fujian province prioritizes newlyweds and first-time parents in unit selection and rent reductions for public rental housing, while Shanghai and Beijing allow multi-child families to buy an additional home.

Policies could extend from buying houses to rentals, with targeted rental and mortgage subsidies for newly married couples and first-time parents, noted Yan Yuejin, deputy director of the E-house China Research and Development Institute.

Housing accounts for 60 percent to 70 percent of household assets, so lowering housing costs for young people is essential to lift marriage and birth rates, said Song Hongwei, co-president of Tospur Real Estate Consulting. Policy support should continue to meet genuine housing needs and boost demand for upgrades, Song added.

Editor: Martin Kadiev