China’s Housing Market Boosted as Shanghai and Other Top Tier-1 Cities Ease Ownership Curbs: Guangzhou Paves the Way for Nationwide Policy Deregulation

Shanghai, along with other leading tier-1 cities, are relaxing property ownership restrictions, providing a lift for China's real estate sector. Guangzhou is paving the way for policy liberalization nationwide, as pointed out by Yan Yuejin from E-house China Research and Development Institute.

Guangzhou, the administrative center of the southern province of Guangdong, is lifting all restrictions on home purchases starting today, as per a recent announcement. Moreover, Shanghai, the country's economic and trade nucleus, along with Shenzhen, a prominent technology center, have also eased the rules for non-residents to buy apartments in both cities.

The trio of cities revealed their updated residential regulations late on Sunday, just before the seven-day National Day break commencing on the first of October.

The resolutions closely followed the actions taken by the central government last week, aimed at salvaging the real estate market. These included directives for commercial banks to cut down mortgage rates, thereby decreasing the loan repayment load by 150 billion yuan (or US$21.4 billion) per year. Additionally, the initial payments for buying a second home were also lowered.

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"Major actions are underway to stimulate the purchase of homes in the upcoming holiday season," stated Yan Zhancai, a sales advisor at a Lianjia branch in Shanghai, which is a part of KE Holdings, the biggest real estate brokerage in China. "The accumulated demand is anticipated to unleash and we foresee a significant influx of queries from potential buyers."