Major Chinese cities Shanghai, Guangzhou and Shenzhen have adjusted their real estate policies, with a slew of measures unveiled to boost local property markets.
The city of Guangzhou in south China’s Guangdong Province has lifted restrictions on buying properties, a new step for the first-tier city to further optimize its real estate market.
Starting on Monday, qualifications for purchasing a home will no longer be reviewed and there will be no restrictions on the number of homes purchased by families and single individuals with or without local household registration in the city, according to a circular issued by the general office of the municipal government on Sunday night.
<img src='https://news.cgtn.com/news/2024-09-30/Major-Chinese-cities-revamp-home-buying-policies-1xjJmCPb9oQ/img/1d12c2385ff2468d91c518d1cfcec7d2/1d12c2385ff2468d91c518d1cfcec7d2.jpeg' alt='A view of the skyline of Guangzhou's central business district at sunset in south China's Guangdong Province, July 11, 2024. /CFP'
In Shanghai, the minimum down payment ratio for individual commercial mortgages will be reduced from 20 percent to 15 percent for first-home purchases, and from 35 percent to 25 percent for second homes, according to a circular issued on Sunday.
Commercial banks will be guided to lower existing mortgage rates to further reduce mortgage interest expenditures for home buyers. Restrictions on home-buying qualifications will be further relaxed in specific locations in the city. The new measures will take effect on Tuesday.
Also on Sunday, the city of Shenzhen in Guangdong Province announced measures such as reducing the down payment ratio and optimizing district-specific home purchase restrictions.
<img src='https://news.cgtn.com/news/2024-09-30/Major-Chinese-cities-revamp-home-buying-policies-1xjJmCPb9oQ/img/227ec925f1fd4d52b95a6e1598904ca1/227ec925f1fd4d52b95a6e1598904ca1.jpeg' alt='A view of Binhe Avenue in Shenzhen in south China's Guangdong Province, September 29, 2024. /CFP'
Meanwhile, China’s six major national commercial banks announced plans to adjust mortgage rates for existing home loans in line with the central bank’s policies to stabilize the property market.
Detailed measures of the adjustment of mortgage rates for existing home loans will be released on October 12, according to statements from the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications and Postal Savings Bank of China.
The statements noted that the adjustment will be implemented by October 31, 2024.
<img src='https://news.cgtn.com/news/2024-09-30/Major-Chinese-cities-revamp-home-buying-policies-1xjJmCPb9oQ/img/5dc5b928a5e542a1b34ae954c314e72b/5dc5b928a5e542a1b34ae954c314e72b.jpeg' alt='Buildings of Industrial and Commercial Bank of China, China Construction Bank and Agricultural Bank of China in Lujiazui, Shanghai, China, August 30, 2024. /CFP'
The latest measures follow a meeting of the Political Bureau of the Communist Party of China Central Committee on Thursday, which underlined the need for efforts to reverse the real estate market downturn and stabilize the market.
(Source: Xinhua; Cover via CFP)
