{"id":8304,"date":"2024-05-09T11:50:15","date_gmt":"2024-05-09T11:50:15","guid":{"rendered":"https:\/\/internationalpulse.net\/?p=8304"},"modified":"2024-05-09T11:50:15","modified_gmt":"2024-05-09T11:50:15","slug":"chinese-cities-lift-curbs-on-buying-homes-as-property-crisis-bites-2","status":"publish","type":"post","link":"https:\/\/internationalpulse.net\/?p=8304","title":{"rendered":"Chinese cities lift curbs on buying homes as property crisis bites\u00a0"},"content":{"rendered":"
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\nBeijing \u2014\u00a0<\/span><\/p>\n
Two of China’s wealthiest cities said Thursday they would lift all restrictions on buying homes, joining a growing list of urban areas rolling back curbs as they look to prop up the faltering property market.<\/p>\n
Many Chinese cities imposed restrictions and tough credit requirements on home purchases well over a decade ago in an effort to tamp down soaring prices and rampant speculation.<\/p>\n
But they are now reversing those policies in a bid to stem an economic slump characterized by a debt crisis among developers, low demand and falling prices.<\/p>\n
The eastern city of Hangzhou \u2014 home to 12.5 million people \u2014 said Thursday it had ditched all purchase restrictions “to promote the [market’s] stable and healthy development”.<\/p>\n
“From the date of issuance… those who buy lodgings within the bounds of this city will no longer have their purchasing qualifications reviewed,” it said.<\/p>\n
Hangzhou, a major innovation hub home to tech giants such as Alibaba, is one of the most desirable and expensive places to buy property in China.<\/p>\n
In a separate announcement, the northwestern city of Xi’an, which has a population of 13 million, said it had also cancelled all such restrictions.<\/p>\n
The announcements quickly racked up more than 230 million views on social media site Weibo, where many users were doubtful the policy would make any difference.<\/p>\n
“With Hangzhou’s house prices, what’s the point of cancelling buying restrictions? I still can’t afford it,” wrote one commenter.<\/p>\n
Bill Bishop, publisher of the influential Sinocism<\/em> newsletter, called the move “a sign of desperation.”<\/p>\n
“If this does not goose sales there will be more trouble as prices will have to adjust downward a lot,” he wrote on social media site X.<\/p>\n
More than 20 cities have abolished home purchase restrictions since the beginning of last year, according to an AFP tally.<\/p>\n
Chengdu in southwestern China said last month it would no longer look at prospective buyers’ household registration documents, social security and other conditions before greenlighting purchases.<\/p>\n
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\n<\/div>\nA boat sails across the Huangpu river in Shanghai on May 7, 2024.<\/span> \n<\/figcaption><\/figure>\n<\/div>\n
Several of the biggest cities, including Beijing, Shanghai and Shenzhen, have partly lifted curbs but have resisted dumping them entirely.<\/p>\n
Property and construction account for more than a quarter of China’s gross domestic product, but the sector has been under unprecedented strain since 2020.<\/p>\n
That year, authorities tightened developers’ access to credit in a bid to reduce mounting debt.<\/p>\n
Since then, major companies including Evergrande and Country Garden have teetered on bankruptcy, while falling prices have dissuaded consumers from investing in property.<\/p>\n
Measures introduced by the central government to support the sector have so far had little effect.<\/p>\n
And President Xi Jinping has largely stuck to his often-touted maxim that “houses are for living in, not for speculation.”<\/p>\n
Last month, the International Monetary Fund said China’s economic recovery from the pandemic could falter if the crisis was not properly addressed.<\/p>\n
“Without a comprehensive response to the troubled property sector, growth could falter, hurting trading partners,” it warned in its World Economic Outlook report.<\/p>\n<\/div>\n<\/div>\n
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