Shanghai, other top tier-1 cities ease ownership curbs in boost for China’s housing market
Guangzhou is setting the tone for policy deregulation across the country, says Yan Yuejin of E-house China Research and Development Institute
Guangzhou, the capital of southern Guangdong province, will remove all curbs on homebuying from today, according to an announcement. Shanghai, the mainland’s financial and commercial centre, and the tech hub of Shenzhen also loosened requirements for non-locals to own a flat in both cities.
The three cities unveiled their new housing policies on late Sunday, ahead of the week-long National Day holiday starting on October 1.
The decisions came hot on the heels of the central government’s actions last week to rescue the property market that included instructions for commercial banks to trim mortgage rates, lessening the loan servicing burden by 150 billion yuan (US$21.4 billion) annually. Down payments on second home purchases were also reduced.
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“Significant steps are being taken to encourage homebuying during the coming holiday,” said Yan Zhancai, a sales consultant in Shanghai at an outlet of Lianjia, owned by China’s largest real estate brokerage KE Holdings. “Pent-up demand will be released and we expect to receive a lot of inquiries from buyers.”
The central government and local authorities have been rolling out a swathe of policy measures to clear unsold homes and ensure the timely delivery in new housing projects. Last week’s package is the boldest to be introduced since the slump that began soon after the “three red lines” clampdown in August 2020.
