Date
17 August 2017
Many Chinese cities have seen slower sales and rising inventory of new homes, prompting local authorities to adjust their property policies. Photo: Bloomberg
Many Chinese cities have seen slower sales and rising inventory of new homes, prompting local authorities to adjust their property policies. Photo: Bloomberg

Over 30 Chinese cities said to mull relaxation in property curbs

More than 30 Chinese cities are looking to ease their home purchase restrictions within this year, after Hohhot took a bold initiative last month, Securities Daily reported Monday.

“The home purchase limit is very likely to be removed in many cities. It would only stay in first-tier cities and those with populations of over 10 million,” the report quoted Zhang Dawei, chief analyst of Centaline Property, as saying.

After Hohhot issued an official document scrapping its restrictions on June 27, Jinan, the capital city of Shandong province, is said to have made a similar move a week later.

“We plan to adjust existing property curb policies to ensure healthy and steady development of the property market. We are studying possible revisions on existing measures, and will implement them after reaching a decision,” the city’s housing bureau said on its website.

In the meantime, Wuhan, the capital of Hubei province, said it will relax its policies to allow local residents to buy a third home and non-local residents to buy a second one. And local property developers will be barred from engaging in any “vicious price cuts”, it said.

Local authorities will hold discussions with developers who had offered a price reduction of 15 percent. Meanwhile, entities offering 25 percent cuts will be suspended from an online registration system, the report said, citing an internal official meeting.

Analysts say the real impact of the policy relaxation might be limited as most of the smaller cities are facing high property inventory and slower inflow of non-local residents.

Jinan, for instance, had reported contracted sales of 20,753 units in the first half of this year, down 33 percent from a year earlier. However, new homes available for sale were up 10,000 units in the period, according to Centaline data.

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