BEIJING: China’s eastern metropolis of Hangzhou, among the country’s most thriving cities, on Thursday ( May 9 ) said it would lift all home purchase restrictions to shore up its real estate market, raising the prospect of other cities following suit.
As of May 9, Hangzhou’s state will no longer animal the registration of prospective buyers, the town enclosure authority said in a see.
The rich Zhejiang province’s funds, Hangzhou, is home to some of China’s most expensive and highly desirable real estate. That resulted in local officials enforcing restrictions on home purchases to halt debate.
Since 2021, home demand has slowed across the nation, hitting also China’s historically hot markets like Hangzhou, as property developers ‘ debt crises and price declines have slowed consumer sentiment.
Although many of the measures have been implemented slowly or with only a minimal, short-term effect, Chinese regulators have been implementing them.
In Hangzhou, fresh house prices edged up 1.0 per cent yr- on- year in March, the slowest pace in roughly six years, according to the latest data from China’s statistics bureau.
In April, the state’s fresh home sales stood at 310, 000 square m, slumping 75 per cent season- on- time, a survey from real estate firm CRIC showed.
A conference of Communist Party leaders on April 30 called for legislation to help the housing sector, claiming that it would boost policies to combat mounting housing inventories.
A moment before, the southern area of Chengdu, house to 21.4 million residents, dropped all house- buying limits.
According to researcher Yan Yuejin at E-house China Research and Development Institute, Hangzhou is the first area to completely remove purchase restrictions following the meeting.
The city’s choice may be “very inspiring” for different cities that still have curbs on home purchases, and a wave of cities may see unprecedentedly big- scale policy easing starting in May, Yan said.
The city of 12.5 million people is China’s answer to Silicon Valley, home to technology majors including Alibaba Group and NetEase. Tech talent from all over China have sprung up, which has increased housing demand.
According to the housing authority, the policy change is intended to address that demand and promote healthy real estate market growth.
Weibo’s initial public response was less than enthusiastic.
” What’s the point of cancelling the purchase restrictions? Hangzhou’s ( high ) property prices make it unaffordable for us to buy still”, one netizen commented after the announcement.