China has been rolling out concrete measures in adapting to the major changes in the relationship between supply and demand in the real estate market. 

On Wednesday, China's tax authority issued the guidelines on tax and fee preferential policies for supporting coordinated development. The guidelines included 216 preferential tax measures, with emphasis on incentives to boost consumer confidence.

Improving public services and facilities, enhancing the urban housing system, and promoting urban regeneration will effectively stimulate housing demand, said Bruce Pang, chief economist and head of research at JLL Greater China. These efforts may also drive consumption, he added.

Earlier this month, China announced to extend two financial policies supporting the stable and healthy development of the real estate market to the end of 2024, involving a 16-step guideline rolled out last November.

The supply and demand relationship in the real estate market has undergone profound changes, so there is room to improve the policies introduced during the overheated stage of the market, said Zou Lan, head of the monetary policy department of the People's Bank of China (PBOC), at a press conference on July 14.

In terms of the real estate policies in the second half of year, Pang expected the focus to be a balancing act between preserving demand and ensuring supply. 

Pang said that sales recovery should continue to be sustained based on confidence, expectations, and risk preferences of microeconomic entities, adding that the establishment of long-term mechanisms for the real estate market will facilitate its stable and healthy development, as well as transform its development model.

(With inputs from Xinhua)