Date
20 October 2017
Shanghai has reportedly eased home purchase restrictions in Huangpu, Luwan and Xuhui districts, although CCTV News has denied this. Photo: Bloomberg
Shanghai has reportedly eased home purchase restrictions in Huangpu, Luwan and Xuhui districts, although CCTV News has denied this. Photo: Bloomberg

Property slump spreads to more cities

The property slump is spreading to more Chinese cities, including first-tier cities, and this may prompt local governments to relax their home purchase curbs, JRJ.com reported.

The average prices of new homes in 55 cities declined in June from the previous month, up from 35 cities in May, according to data released by the National Bureau of Statistics on Friday.

Among the four first-tier cities, only Beijing has maintained a growth trajectory in the last two months, with 0.1 percent rise from May, while Shanghai, Guangzhou and Shenzhen have reported declines of 0.7 percent, 0.6 percent and 0.4 percent respectively.

Wenzhou, Ningbo and Hanzhou, three cities in eastern China’s Zhejiang province, saw their housing price index fall below the level four years ago, the report said.

Several cities have started to relax their property curbs to stimulate the market. For example, Shanghai has eased the purchase restrictions in Huangpu, Luwan and Xuhui districts, according to media reports.

Couples that have local residency under the hukou registration system will be allowed to buy one more home, if either the husband or the wife does not own any property while the spouse shares no more than three homes with his or her parents.

Local couples will be allowed to buy a second home if they both share no more than two properties with their parents. In addition, local single or divorced residents will be allowed to buy a second home if they share no more than two houses with parents.

However, CCTV News said the relaxation was a mere rumor and property curbs have not been changed in Shanghai, after verifying the reports with the deputy head of the Shanghai Housing Bureau, according to a statement posted on its Weibo account on Thursday.

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JZ/JP/CG

Freelance journalist

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