The Chinese Property Market Responds to Changes in Purchase Policies
In recent weeks, the property market in China has seen significant adjustments to purchase policies in multiple cities including Shanghai and Guangzhou. The move comes as part of efforts to optimize property market control with the aim of stimulating demand and stabilizing the real estate market.
In Shanghai, eligible single non-household registered residents are now allowed to purchase houses, a move that is expected to expand the pool of potential home buyers, particularly young urban dwellers. According to Lu Wenxi, a market analyst at Shanghai Zhongyuan Real Estate, the new policy is expected to enhance urban vitality and competitiveness.
Meanwhile, in Guangzhou, the purchase restriction policy for houses with a construction area of more than 120 square meters has been canceled. This action, according to Li Yujia, chief researcher of the Guangdong Provincial Housing Policy Research Center, aims to reduce restrictions on large-scale housing purchases and support improvement in the city’s real estate market.
The changes to the purchase policies have had a noticeable impact on the property market. In Guangzhou, the number of people viewing houses and the number of transactions in many real estate sales centers increased significantly following the implementation of the new policy. A similar trend was observed in Shanghai, where new real estate projects outside the outer ring road experienced increased interest.
The positive effects of the policy adjustments are not limited to the new property market. In both Guangzhou and Shanghai, there has been an uptick in the number of viewings of second-hand houses, particularly those over 120 square meters, indicating a growing interest in the property market.
The favorable policies for the property market have been well-received by industry watchers, who expect an increase in property market activity due to city-specific policies. According to the Ministry of Housing and Urban-Rural Development, emphasizing city-specific policies is essential to further release demand for home purchases and promote the stable and healthy development of the real estate market.
Observers believe that the optimized implementation of property market regulation policies in various regions will significantly increase the number of willing, capable, and qualified home-buying groups, thereby stabilizing market expectations and boosting confidence. It is anticipated that the property market will see increased attention and activity in the coming months as the policy effects continue to unfold.
Overall, the adjustments to property market control policies in cities such as Shanghai and Guangzhou are expected to strengthen market confidence and expectations. Analysts project a stable and positive outlook for the property market in the first half of the year, anticipating a surge in transaction data and heightened enthusiasm for home buying.
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