BNR – In a move to revive the economy, several Chinese cities have taken steps to remove restrictions on homebuying. This, indeed, has marked a significant shift in the country’s property sector policies.
Dalian and Shenyang, both prominent cities in Liaoning province, have independently declared the removal of constraints.
The two cities lifted restrictions on the number of properties residents can purchase across most parts of the cities.
Incentives for Buyers and Sellers
Additionally, they have introduced attractive incentives for buyers and sellers, including subsidies and tax relief.
Nanjing, the capital of prosperous Jiangsu province, has joined this initiative by permitting individuals to buy flats without the need for proof of eligibility in four specific districts. This change effectively relaxes the last remaining restrictions on home purchases in the city.
These announcements come in the wake of a series of nationwide measures designed to support the property sector.
The measures also include the introduction of lower mortgage rates tailored for first-time homebuyers.
Reviving Property Sector
China’s property sector contributes to a quarter of the nation’s economic activity. It has been grappling with challenges since 2021 when the government initiated efforts to curb excessive debt accumulation by property developers.
The decision to ease home-buying restrictions signifies a strategic effort by Chinese authorities to stimulate economic growth.
Furthermore, China is revitalising the property sector, which is a crucial component of its financial identity.