Revitalizing China’s Housing Market: Hangzhou and Chengdu Ease Property Purchase Rules to Encourage Transactions

Real Estate in China: Hangzhou and Chengdu Relax Buying Regulations to Stimulate Property Sales

The capital of Zhejiang province removes price limits on houses constructed on recently obtained land and reduces down payments for both new and pre-owned residences.

Hangzhou and Chengdu have enhanced their residential property policies within their cities, indicating that major mainland Chinese cities are taking more decisive actions to balance the market.

In Hangzhou, the capital city of Zhejiang province and the base for Chinese tech giants Alibaba Group Holding and Geely Auto, housing price caps for homes constructed on recently procured land have been lifted. This information was revealed in a late Wednesday announcement from the city's housing department.

The municipality has reduced the initial payment prerequisite for first-time home purchasers from 20% to 15%, and for second homes, it has been cut down from 30% to 15%, as stated in the announcement.

Yan Yuejin, the vice-president of the Shanghai-based E-House China Real Estate Research Institute, predicts that the decline in Hangzhou's housing prices will soon come to a halt.

"With the introduction of the latest regulations and an increase in housing trades during the 'golden week' holiday, we anticipate a surge in property developers rushing to acquire land in Hangzhou."

Three forty-nine

Xi's impassioned plea establishes economic objectives for Chinese authorities, pardoning them for past errors.

The nationwide introduction of price caps in 2016, intended to curb skyrocketing housing costs in the thriving market, hindered the revival of the world's second biggest economy after experiencing a slump since 2021.