Date
17 August 2017
Jinan is one of a few mainland cities that have benefited from looser home purchase restrictions. Photo: Bloomberg
Jinan is one of a few mainland cities that have benefited from looser home purchase restrictions. Photo: Bloomberg

Removal of property curbs little help in reviving sales

Looser home purchase restrictions have done little to stimulate the sluggish property market in most Chinese cities, Securities Times reported Friday.

A dozen of them have eased property curbs to some extent but the effort paid off in just a few cities such as Hangzhou, Jinan and Nanning, the report said.

In Hangzhou, the relaxation had an immediate impact, with residential transactions spiking to 240 units on July 29, the day local authorities announced the change.

A luxury apartment project in the city sold six units, worth 159 million yuan (US$25.73 million), on the morning of the announcement, the report said.

In Nanning, capital of Guangxi province, weekly property sales soared to 170,000 square meters shortly after it eased property curbs on April 25.

However, the figure fell to 100,000 square meters a month later.

The relaxation has had limited impact on cities such as Tianjin, Nanchang, Xiamen and Wuxi.

In Nanchang, property sales fell 2.7 percent week on week after the policy change, the report said.

“The removal of property curbs has not been much help. Most cities are still facing lackluster property sales and in a few cities, sales have fallen back very quickly after a short uptick,” the report said, citing Zhang Dawei, chief analyst of Centaline Property.

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JZ/JP/RA

Freelance journalist

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