Date
20 October 2017
High inventory and weak sales are said to have prompted Jinan authorities to scrap local home purchase restrictions. Photo: Bloomberg
High inventory and weak sales are said to have prompted Jinan authorities to scrap local home purchase restrictions. Photo: Bloomberg

Jinan said to have scrapped housing curbs

Jinan, the capital city of Shandong province, has received approval from the Ministry of Housing and Urban-Rural Development to fully scrap its housing curbs from July 10, China National Radio reported Thursday.

It means that people who want to buy new or second-homes in the city no longer need to bother about their household certificates, the report said, citing the city’s housing authority.

The move suggests that the city’s home purchase restrictions that had been in place for more than three years are now officially canceled. Under the previous curbs, residents with household certificates showing ownership of two or more homes or those without household certificates with ownership of one or more homes were not allowed buy more homes.

Although the local housing authority is yet to publish on its website the cancelation notice, several real state agencies have confirmed the decision and have begun to put out signs to notify potential buyers.

As many second and third-tier cities have been suffering from high housing inventories and cooling interest among homebuyers, Jinan finally gave in and joined the other cities to ease the pressure in the property market. Data suggested that it could take nearly 17 months to clear the existing housing inventory in Jinan as of end-June.

Inner Mongolia’s capital Hohhot on June 26 became the first in the country to officially scrap home purchase curbs. There were reports that Shenyang, Guangzhou, Wuxi, Taiyuan, Xiamen, among others, have also eased restrictions.

Some experts say that more than 30 cities out of the 47 that have implemented the curbs will ease the rules in the second half of the year.

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TL/AC/RC

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