Chinese homebuyers' confidence has risen in response to a new package of stimulus measures announced by the government, signaling an upturn in the nation's real estate market.
Under the new measures aimed at stabilizing the property market, major cities including the capital Beijing, the eastern metropolis of Shanghai, and the southern cities of Guangzhou and Shenzhen, have eased restrictions on property purchases, boosting buyer's confidence after the thresholds were lowered for non-local buyers and existing home mortgage rates were adjusted.
Thanks to policy adjustments announced on Sept 30, both transaction volume and inquiries for existing homes in Beijing increased notably during the week-long National Day holiday, which runs from Oct 1 to 7.
The metropolis of Chengdu, located in southwest China's Sichuan Province, on Tuesday granted all home-owners and home buyers in the city eligibility to apply for household registration in that city.
According to new regulations issued by city authorities, individuals who purchase commodity housing which is already delivered or existing housing within the administrative area of Chengdu, are eligible to apply for the city's household registration at the location of their property.
The new regulations, valid for three years, grant home-owners and home buyers undifferentiated eligibility to apply for residential status in Chengdu -- eliminating hukou qualification restrictions prescribed in previous regulations concerning the size of the purchased housing and the amount of time that has passed since the purchase.
Residential or household registration, referred to as hukou in Chinese, has always been a key attraction for non-natives in major cities, as it leads to opportunities and benefits upon securing permanent residency in a city.
In addition, many sales offices for new housing developments in Shenzhen City in south China's Guangdong Province have been welcoming numerous prospective homebuyers.
Units in a new property located in Longhua District sold out within just over three hours of its opening.
"Compared to the situation before the new policies, both visitor numbers and transaction volumes for our project have now increased by five to six times," said Liu Wenzhi, sales manager for a new housing development.
"The down payment ratio has decreased, and interest rates have been lowered. I intend to buy a larger house here and live with my parents," said Zhou, a resident from Dongguan City.
The real estate market in Shanghai has also been heating up since the implementation of new housing policies. Data indicated that the city saw a record of 1,334 existing home sales on Sunday, marking the highest single-day volume since September of last year.
China's Ministry of Housing and Urban-Rural Development has said that it will support municipal governments, especially those in the first-tier cities, to leverage their decision-making powers to regulate the real estate market and adjust policies restricting housing purchases based on local conditions.
China's property market sees positive changes amid beneficial housing policies
