A campaign by Chinese authorities to encourage people to replace their old apartments with new ones is attracting interest, but facing one major hurdle: program participants are struggling to sell their current homes.
The campaign, announced at a key political meeting last month, aims to help cities across China offload their growing stock of new apartments and provide crucial cash flow to cash-strapped developers. Since May 6, more than 50 cities have launched their own versions of the “swap old for new” program, according to a private survey by the China Index Academy.
But analysts, real estate agents and developers say interest in buying second-hand homes is very limited, casting doubt on the campaign’s success and suggesting China’s real estate sector decline will continue.
