Beijing's property market experienced a surge in sales after the implementation last Wednesday of the city's new policy package, which relaxes purchase restrictions for non-local households.
At a new residential project in Beijing's Haidian District, the sales office was crowded on the first weekend following the rollout of the new policy, prompting developers to call in additional agents to handle the influx of potential buyers.
"Previously, ground-level parking spaces generally had vacancies available. Starting from Dec. 25, however, ground spaces were fully occupied, and we had to coordinate with property management to open underground parking facilities. Daily transaction volume rose from an average of three to four units to approximately 10 units per day," said Xu Chao, the sales manager.
Under the new housing policy, non-local households seeking to purchase homes inside Beijing's Fifth Ring Road must now have paid social insurance or individual income tax for two years, down from three years previously. For properties outside the Fifth Ring Road, the required payment period has been cut from two years to one year.
"For individuals whose social insurance contribution periods fall short of requirements, this represents by far the most significant benefit," said Wen, a resident.
"Throughout the day, from morning until now, I've been continuously receiving clients who previously lacked eligibility and are returning for another viewing. Three clients have already paid the subscription deposit under the new policy," said Li Junying, a real estate agent.
Data from the Beijing Municipal Commission of Housing and Urban Rural Development show that new-home purchases in the city averaged 133 units per day from Thursday to Sunday, marking a nearly 50 percent increase over the period preceding the policy adjustment.
"This policy adjustment in Beijing, on the one hand, eases housing purchase restrictions to targetedly unlock first-home demand; on the other hand, leverages financial tools to support and boost improvement-oriented demand. Together with the series of policies previously introduced by the central government and Beijing, these form a combined force, providing strong stimulus to the demand side," said Wu Jing, director of Tsinghua University's Research Center for Real Estate Finance.
Beijing housing market picks up after adjustment of purchasing policy
