Date
22 November 2017
High inventory of new homes has prompted Hangzhou to loosen its property curbs. Photo: Xinhua
High inventory of new homes has prompted Hangzhou to loosen its property curbs. Photo: Xinhua

Hangzhou eases home-purchase curbs, sending prices higher

Authorities in Hangzhou, the capital of China’s eastern Zhejiang province, have announced that they will loosen the local home-purchase curbs from Tuesday, China Business News reported.

In a microblog post, Hangzhou’s housing authority was quoted as saying that buyers of homes located at the city’s Xiaoshan and Yuhang districts will no longer need to present inquiry results to prove their home ownership status, and that the same policy will apply to those who buy homes of 140 square meters or larger in downtown areas.

Developers in the city are said to be raising their prices after the official announcement, although the extent of the price hikes is not known, the report said. According to one developer, he sold four homes immediately after the policy loosening news surfaced, as clients were afraid that prices will go up later.

Hangzhou has been one of the cities in China that suffered high inventory of homes. Contracted sales of commodity homes in the city in the first six months of this year amounted to only 4,859 units, at an average price of 15,000 yuan (US$2,424) per square meter. That compares with 41,061 units sold in the same period last year at an average price of 17,790 yuan per square meter.

Meanwhile, authorities in Xuzhou in Jiangsu province also issued an oral notice Monday that no proof of check on home ownership is required for homebuyers from August 1, according to the report.

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