Guangzhou to tweak ‘hukou’ residency system in major drive to revive home sales
The capital of southern Guangdong province is saddled with 13.2 million square metres of unsold homes, which will require 22 months to clear
Guangzhou will introduce new measures to enable homebuyers to gain local residency, outrunning rival top tier Chinese cities in tweaking the household registration system to revive home sales, following the central government’s intervention to rescue the housing market.
People who have bought homes in the seven districts in the city – Baiyun, Huangpu, Huadu, Panyu, Nansha, Conghua and Zengcheng – and have paid social insurance for one year, would be eligible to apply for hukou or official residency, the local government said.
Individuals who have paid at least 200,000 yuan (US$27,650) in income tax in Guangzhou over the past 36 consecutive months may also apply for hukou, according to new proposals it published late Monday.
“The incentives will spur demand to some extent,” said Chen Xueqiang, an analyst with China Index Academy. “The relaxation of hukou requirements could also attract and retain talent in the city, which in turn can become a source of demand for homes in the long run.”
New home sales in the first 10 months generated by top 30 developers in Guangzhou shrank by 13 per cent from one year earlier, according to China Real Estate Information Corp, mirroring the slump in nationwide housing sales. The city has 13.2 million square metres of unsold inventory, according to China Index Academy, which may take 22 months to clear based on current demand, it estimated.
