Real Estate-Related Special Bonds Surge in Q1 2026, Boosting Market Stability

Data from China Index Academy shows that in the first quarter of 2026, the issuance scale of special bonds related to the real estate sector, including affordable housing projects, rental housing, shantytown renovation, old urban community renovation and land reserves, increased significantly to support the stable development of the real estate market.

According to Economic Reference News, incomplete statistics from China Index Academy indicate that the issuance of real estate-related special bonds reached 225 billion yuan in Q1 2026, a year-on-year surge of 42%, accounting for 19.4% of the newly added special bonds in the same period and maintaining a relatively high level.

In terms of provincial and municipal issuance, economic powerhouses and pilot regions for "self-review and self-issuance" of special bonds took the lead. Since 2025, Beijing and Guangdong have both issued over 120 billion yuan of real estate-related special bonds, ranking the top two in the country. In Q1 2026, Guangdong’s issuance exceeded 40 billion yuan, ranking first nationwide, while Beijing, Jiangsu and Shandong each issued more than 20 billion yuan.

Notably, the issuance of special bonds for urban village renovation, a key part of urban renewal, saw explosive growth in Q1. Data shows that the national issuance of urban renewal-related special bonds approached 120 billion yuan in the quarter, reaching one-third of the total in 2025 and a year-on-year increase of 7%. Among them, bonds for urban village renovation exceeded 50 billion yuan, surging 140% year-on-year and accounting for over 40% of urban renewal-related bonds.

Yan Yuejin, vice president of Shanghai Ehanzhuang Real Estate Research Institute, stated in an interview that in the first year of the "15th Five-Year Plan", the issuance of local government special bonds in Q1 highlighted the orientation of "acting early and precise drip irrigation". "It reflects the active fiscal policy of 'early implementation and early effect' and the strategic shift from traditional development to ensuring housing, urban renewal and stock activation during the real estate adjustment period," he added.

Since its resumption in 2025, land reserve special bonds have become an important funding source for revitalizing idle land. According to China Index Academy, although the issuance rhythm slowed slightly in Q1 2026, land reserve special bonds still reached about 91.8 billion yuan, accounting for 40.8% of real estate-related special bonds.

As of March 31, over 5,800 idle land plots nationwide have been planned for repurchase with special bonds, covering 300 million square meters and totaling 780 billion yuan. For example, Hefei Municipal Bureau of Natural Resources and Planning plans to repurchase 3 idle plots owned by Overseas Chinese Town for 1.725 billion yuan.

A responsible person from China Index Academy noted that there is great potential for repurchasing idle land with special bonds, which will help local governments revitalize inefficient land and assist enterprises in accelerating capital recovery.