Real estate agencies in Guangzhou City, capital of south China's Guangdong Province, have seen an increasing number of potential home buyers during the ongoing National Day holiday, after this first-tire city on Monday lifted restrictions on home purchase.
Starting on Monday, the qualification for purchasing homes in Guangzhou will no longer be reviewed and there will be no restrictions on the number of homes purchased for families and single individuals with or without local household registration in the city, according to a circular issued by the general office of the municipal government on Sunday night.
Guangzhou's full cancellation of the purchase restriction policy marks a major breakthrough in the regulation and control of the local real estate market, which drives the enthusiasm of potential home buyers .
"Somewhat influenced by the new policy, we came here to consider buying a new home. Currently, the home prices in Guangzhou are relatively low, so we want to seize this opportunity if there's an ideal option," said a local potential home buyer.
"In the first week of October, there is generally a high transaction volume of new homes. By 11 p.m. on October 2, our company has closed 1,200 sets of new home transactions," said Wang Huaxin, manager of the Guangzhou Jinhai sub-branch of Guangdong Lianjia Real Estate Brokerage.
The easing of regulations boosted market confidence, bringing the long-awaited surge in home purchases. Another real estate agent said she observed a notable increase in both sellers listing their properties and potential buyers exploring their options recently.
"Yesterday (Oct 2), our team saw a 20-percent jump in the number of potential buyers coming to view properties," said Liu Weilian, general manager of the Taorantingyuan sub-branch of Shenzhen Leyoujia Holding Group Guangzhou Branch.
A scholar based in Shenzhen believes that after the latest round of policy adjustment, property prices will shift to a normal level based on buyers' reasonable housing needs.
"First, following the regulation of the real estate market in recent years, housing prices in major cities have stabilized within a reasonable range, and both housing prices and urban development have embarked on a sustainable path. Second, our government has implemented stimulus policies for both the stock market and the real estate market, signaling its hope that, amidst the ongoing round of U.S. dollar interest rate cuts, the value of our core assets in China will revert to a fair valuation, thereby safeguarding the wealth of both our nation and its residents," said Wu Haifeng, director of the Center for Sustainable Finance under the Chinese University of Hong Kong (Shenzhen).
Guangzhou lifts home purchase restrictions to boost real estate market
