CITIES across China have been rolling out measures to stabilize the real estate market this month. Some have fully buying restrictions, while others eased these rules further. Experts said on Sunday that these new policies have contributed to a sustained recovery in property markets across regions, with confidence gradually bouncing back.
Since the new policies were introduced, there has been a noticeable increase in the number of people visiting and buying homes. A Beijing resident surnamed Qin told the Global Times that her property had been listed on a real estate platform for about three months, “with only sporadic viewings, most of which didn’t lead to further action.”
After Beijing eased its purchase restrictions, the number of viewings showed an obvious increase, and Qin’s property was sold on October 4.
“Previously, buyers would come and offer steep price cuts. I even considered not selling it at one point. But the person who eventually bought our apartment was straightforward and didn’t negotiate. We chatted online for just half an hour before signing the deal,” she said.
Data tracked by a research institute under the Centaline Property showed that the actual transactions of secondhand homes in Beijing from October 1 to 7 reached 5,500 units. The figure was up by more than 175 percent year on year.
Beijing announced new real estate policies on the night of September 30, which included adjustments to purchase restrictions, lowering down payment ratios and adjusting existing mortgage rates, along with five other measures.
Following the announcement, many real estate agencies canceled their National Day holiday breaks, with many agencies requiring all staff to return to work, according to media reports.
Guangzhou, the capital city of South China’s Guangdong province, was the first among the four first-tier cities to fully lift its home purchase restrictions before the holidays.
In the past two weeks, both the new and secondhand housing markets in Guangzhou have seen significant growth in transactions. The city recorded 6,687 new home subscriptions, 2.37 times higher than the same period last year, while secondhand homes registered 3,771 online signings, a 23-percent year-on-year increase, according to China Media Group.
The Ministry of Finance held a press conference on Saturday and noted that China will apply a set of fiscal policy tools including local government special-purpose bonds, special funds and taxation policies to help stabilize the property market.
Yan Yuejin, research director at Shanghai-based E-house China R&D Institute, told the Global Times that the focus of efforts in the fourth quarter is on promoting a rebound in the housing market, which is already progressing in an orderly manner.
“With the revitalization of land projects and existing property projects, there is further potential to improve the balance between supply and demand. From this perspective, these measures are laying the foundation for a stronger real estate market next year,” Yan said.
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