China's Shift in Urban Planning: From Expansion to Quality

China focuses on improving urban villages and old houses, as rapid urban growth shifts to stable development. The housing market faces challenges from oversupply and weak demand. President Xi Jinping highlights the need for quality and inventory efficiency to balance growth amidst economic changes.

BEIJING, July 15 (Reuters) - In a landmark shift in urban policy, China plans to advance the upgrade of urban villages and deteriorated housing as outlined during its first top-level urban planning meeting in ten years, according to state news agency Xinhua.

President Xi Jinping addressed the assembly, emphasizing a transition from rapid urban growth to stable development aimed at enhancing the quality and efficiency of urban inventories. This marked a significant departure from the large-scale expansion strategy of 2015 that spurred housing price increases.

Economists warn that repeating the 2015 style stimulus is unfeasible due to housing oversupply and diminished demand fueled by economic instability and trade tensions. Despite new home prices experiencing their steepest fall in eight months, experts call for more market support as China struggles to meet its 5% growth objective.

(With inputs from agencies.)