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BEIJING: Homes in Chinese President Xi Jinping’s flagship city Xiongan will only be sold after they have been built, a state-owned news website said, bucking the prevailing trend among most big property developers, which are fighting to avoid default.
Xiongan is located about 100km southwest of Beijing. The state-owned People’s Daily Online reported on Wednesday (Sep 20) that the city had introduced the rules among several policies that include selling renovated homes and offering for rent nearly 10,000 homes at an affordable price.
The property sector was once a pillar of China’s economic growth and most developers sell homes “off the plan” or before construction has been completed.
Chen Wenjing, analyst at real estate research firm China Index Academy, said selling completed homes was more in line with the wishes of home buyers who have been hit by the crisis in the property sector which slumped as China’s economy slowed.
Around 30 cities eased home purchase curbs and relaxed mortgage rules for buyers in recent weeks but analysts say Beijing may have to introduce more aggressive property easing measures to deliver a real recovery.
“We expect it to take more than 18 months for China’s real estate market to destock to pre-COVID level and property investment may turn positive year-on-year from the second half of 2024 onwards,” said ANZ.
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