Chinese Cities Ease Home Purchase Restrictions to Boost Market

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Major cities in mainland China, including Guangzhou, Shanghai, and Shenzhen, have announced easing measures on home purchases. These moves aim to stimulate the struggling property market following recent policy stimulus from the central bank.

The Guangzhou city government said in a notice on Sunday that all restrictions on home purchases would be removed, effective from Monday.

Shenzhen's government also relaxed purchasing restrictions — which had capped local families to two homes and single individuals to one — allowing buyers to purchase one more apartment in certain districts.A man walks past a housing complex by Chinese property developer Evergrande in Guangzhou, China's southern Guangdong province on September 17, 2021.

Easing purchase restrictions may help lift property sales in the first-tier cities — like Beijing, Shanghai and Guangzhou — by a greater margin than other cities, said Allen Feng, an associate director at Rhodium Group, pointing out that similar measures had not worked in other cities previously. Chinese policymakers have been ramping up support to reduce household's financial burden and shore up the troubled real estate sector. But the previous measures have not led to any meaningful turnarounds.

 

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