Date
20 September 2017
Nanning, in Guangxi, is relaxing limits on buying homes as the city's property market slides. Photo: Xinhua
Nanning, in Guangxi, is relaxing limits on buying homes as the city's property market slides. Photo: Xinhua

Is Nanning the start of looser home-buying limits?

More mainland cities are expected to follow Nanning’s lead in easing home-buying limits as property prices fall, the China Securities Journal reported Wednesday.

The government of Nanning in the Guangxi Zhuang Autonomous Region is opening the city’s market up to some outsiders, announcing that residents registered in the five sub-cities in the Beibu Gulf economic zone under its jurisdiction can buy homes in the capital.

An analyst from property agency Centanet said the measure can help the city expand its pool of potential homebuyers by more than 10 million, on top of the 6.66 million people who already live in Nanning.

Some analysts were quoted as saying that other centers, including Wenzhou, Changsha and Hangzhou, might follow suit to maintain local economic growth and to improve finances. Options include easing household registration policies to let non-residents buy homes, and shrinking restricted areas.

According to Centanet data, only 16 of the 64 cities that have home purchase restrictions impose curbs citywide, while the others apply the limits to downtown areas.

The authorities of Tianjin’s Binhai New Area said Monday that it is looking at new housing policies, including varied purchase curbs and a system for a range of residence permits.

Local governments might also introduce tax and loan policies to stimulate their housing markets. But, analysts said any effort could be in vain and market weakness will persist, the report said.

– Contact HKEJ at [email protected]

TL/AC/SK

 

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