China's major cities are reporting a rebound in new home sales following property easing measures introduced since August, including relaxed purchase restrictions and targeted subsidies in Beijing, Shanghai, and Shenzhen.
In the first week of September, Shenzhen introduced new property market policies involving optimized district-based purchase restrictions, adjusted rules for enterprises purchasing commercial housing, and improved individual housing credit policies.
During the first weekend after the new policies took effect, significant increases were observed in inquiries, site visits, and transactions at multiple new housing projects. Some developments reported over 500 client visits over the weekend.
A newly launched project in Luohu District extended its business hours from 19:00 to 22:00 to accommodate the increased interest.
"Now there are no purchase restrictions in Luohu District, so I came to take a look since there's a new development here. In previous years, we are eligible to buy new house only when we have paid social insurance for five years. Now there are no such restrictions. The easing policies make it more advantageous," said a resident.
"We estimate that the number of visitors will increase by about 20 percent compared to before," said Luo Jialiang, marketing director of a Shenzhen property development.
On August 8, Beijing rolled out new property market policies, allowing eligible families to purchase an unlimited number of homes outside the city's fifth ring road. One month after implementation, new housing projects have attracted many potential buyers to visit daily.
Influenced by the policy, a significant portion of clients are opting to use provident fund loans for their purchases.
According to the Beijing Housing Provident Fund Management Center, as of September 5, the center had processed 3,695 applications, a 34 percent increase compared to before the new policies were announced.
"Whether it's the adjustment to the criteria for determining first and second homes using provident funds or the changes to loan amounts and ratios for second homes, the primary intention behind our policy rollout is to ensure that housing provident fund contributors are both willing and able to secure loans to the greatest extent possible," said Shuang Liang, director of loan management department at the center.
In Shanghai, since the introduction of new property market policies at the end of August, many high-quality real estate projects have seen a notable increase in visitor numbers. One development sold 100 units on its launch day on August 30, with sales exceeding 400 million yuan (around 56.19 million U.S. dollars).
Data from the Shanghai Municipal Bureau of Housing Security and Management shows that as of September 2, the daily number of down payment contracts signed for projects on sale in Shanghai increased by 63 percent compared to pre-policy levels.
"In summary, these policies help further reduce costs for rigid housing demand and improved housing demand while creating a more relaxed and friendly environment for home purchases. They play a very positive role in activating market transactions," said Yan Yuejin, deputy head of Shanghai E-House Real Estate Research Institute.
Major Chinese cities see property market rebound as new policies take hold
