Chinese cities modify real estate policies to boost market confidence

⁠⁠⁠⁠⁠⁠⁠Multiple cities across China, including Beijing, Guangzhou, Hangzhou, and Shenyang, have eased restrictions on home purchases and loan extensions to revitalize the real estate market, which is expected to improve market expectations as the newly adopted incentive measures take effect.

Beijing recently released its 2024 Housing Development Annual Plan, which provides for the allocation of 1,060 hectares of land for residential purposes, maintaining stable land supply. This includes plans to supply approximately 6 million square meters of commercial housing and to build 70,000 units of affordable rental housing, along with delivering 80,000 units of various affordable housing.

Since late April, multiple cities in southern province of Guangdong have rolled out new real estate policies to shore up the market.

Guangzhou's Huadu District launched a one-year "trade-in" promotion for commercial housing starting on Wednesday, offering multiple discount incentives and allowing participants to unconditionally refund deposits within a certain period.

"The 25 participating companies are mostly large centrally-administered enterprises, state-owned enterprises, or major real estate companies. Their housing units primarily focus on meeting essential needs or providing improvements to current living conditions," said Huang Feifei, secretary general of the Guangzhou Huadu District Real Estate Industry Association.

On Monday, Foshan, a city adjacent to Guangzhou, issued a notice involving 13 measures to incentivize the real estate market.

The measures include supporting the "trade-in" of housing, increasing support for provident fund loans to purchase homes, and implementing a dynamic adjustment mechanism for first-time home loan interest rates. Non-local residents with legal ownership of residential properties in Foshan can apply for household registration, with their spouses and minor children allowed to gain the permanent residential status.

Earlier this month, Hangzhou City in east China's Zhejiang Province announced the easing of home purchase restrictions, including the removal of the housing lottery system and purchase qualifications for commercial housing.

Non-local residents who acquire legal property rights in Hangzhou are now eligible to apply for the permanent residential status.

In northeast China's Liaoning Province, the provincial capital city of Shenyang has announced measures to ease restrictions on application for the permanent residential status, in efforts to attract more people to settle in the city.

These measures include removing the quota limit for points-based household registration, expanding the scope of academic-based applicants, and relaxing criteria for property-based relocation and collective household registrations.

A report recently released by the People's Bank of China -- China's central bank -- suggested a comprehensive study on disposing of existing real estate inventories and modifying new housing policies.

The report advocates city-specific policies and precise implementation of differentiated housing credit policies to better support home purchases for essential needs and improvements, meet the reasonable financing needs of real estate enterprises, and promote stable and healthy development of the real estate market.

Chinese cities modify real estate policies to boost market confidence

On his second official visit to China, Prime Minister of the Republic of Vanuatu Charlot Salwai expressed admiration for China's remarkable ability to balance preserving its cultural heritage with embracing innovative transformation.

Salwai paid an official visit to China from July 7 to 12. During his trip, he toured the southern province of Guangdong and explored the megacities of Beijing and Shanghai. His visit included tours of high-tech companies, a ride on a high-speed train, and a performance of traditional Cantonese opera.

In an interview with China Central Television Network (CCTV) aired on Friday, Salwai recounted his journey starting with a warm welcome that included enjoying Beijing Roast Duck, also known as Peking Duck -- a culinary delight introduced to him by the Chinese ambassador in Vanuatu.

"Many had to say. Peking Duck. Because we had it here on our arrival, so it was very tasty. And I understand that the Chinese ambassador in Vanuatu brought us to one of the traditional restaurants, small but beautiful," he said. The prime minister sees China's preservation of its culture as a vital lesson in understanding one's roots and the journey to the present day, acknowledging China's efforts to integrate cultural preservation with modernization.

"It's going to be my second official visit to China. I'm always impressed to see big changes and especially innovations made by China and especially the cities. Because a big impression is to see how China continues to maintain and keep its culture. Because I think it's the basis of everything -- to know where you come from and to understand where we are today. I feel that China is doing a lot to maintain its culture, but at the same time, doing, innovating to transform its culture,” Salwai said.

He also emphasized the importance of learning from China's sustainable development strategies.

"Today, it comes from a long way, some hardship, the government, and also the people of China. So, I'm impressed to see what is done, especially how China associates infrastructure development with nature. That's meant to keep, continue to keep the environment. It takes effort with the climate change by maintaining the ecosystem. I think it's something that, for a small country like Vanuatu, is important to learn. So, we are here. I'm here with my delegation to learn," Salwai said.

Vanuatu's PM commends China's cultural preservation, innovation amid fast growth