Major Chinese Metropolises Modify Residential Property Purchase Rules
Major Chinese cities such as Shanghai, Guangzhou, and Shenzhen have revised their real estate policies, introducing a series of measures aimed at revitalizing local property markets.
TroibNews 
Major Chinese cities, including Shanghai, Guangzhou, and Shenzhen, have revised their real estate policies, unveiling various measures aimed at stimulating local property markets.
Guangzhou, located in south China's Guangdong Province, has eliminated restrictions on property purchases, marking a significant step for this first-tier city to enhance its real estate landscape. Beginning Monday, there will be no review of qualifications for home purchases, and families and individuals—regardless of their local household registration status—will face no limits on the number of homes they can buy, as stated in a circular released by the general office of the municipal government on Sunday night.
In Shanghai, the minimum down payment ratio for individual commercial mortgages has been lowered from 20 percent to 15 percent for first-home purchases and from 35 percent to 25 percent for second homes, according to a circular issued on Sunday. Additionally, commercial banks are expected to reduce existing mortgage rates to lessen financial burdens for home buyers. Further relaxations of home-buying qualifications will also occur in certain areas of the city, with these measures set to take effect on Tuesday.
Shenzhen has also announced a series of measures on Sunday, including a reduction in the down payment ratio and the optimization of specific district home purchase restrictions.
At the national level, China's six major commercial banks revealed plans to modify mortgage rates for existing home loans in alignment with the central bank's directives, aimed at stabilizing the property market. Details regarding these adjustments will be disclosed on October 12, as announced by the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, and Postal Savings Bank of China. These changes are scheduled to be implemented by October 31, 2024.
These recent initiatives follow a meeting of the Political Bureau of the Communist Party of China Central Committee on Thursday, which stressed the importance of reversing the decline in the real estate market and restoring stability.
Jessica Kline for TROIB News
Guangzhou, located in south China's Guangdong Province, has eliminated restrictions on property purchases, marking a significant step for this first-tier city to enhance its real estate landscape. Beginning Monday, there will be no review of qualifications for home purchases, and families and individuals—regardless of their local household registration status—will face no limits on the number of homes they can buy, as stated in a circular released by the general office of the municipal government on Sunday night.
In Shanghai, the minimum down payment ratio for individual commercial mortgages has been lowered from 20 percent to 15 percent for first-home purchases and from 35 percent to 25 percent for second homes, according to a circular issued on Sunday. Additionally, commercial banks are expected to reduce existing mortgage rates to lessen financial burdens for home buyers. Further relaxations of home-buying qualifications will also occur in certain areas of the city, with these measures set to take effect on Tuesday.
Shenzhen has also announced a series of measures on Sunday, including a reduction in the down payment ratio and the optimization of specific district home purchase restrictions.
At the national level, China's six major commercial banks revealed plans to modify mortgage rates for existing home loans in alignment with the central bank's directives, aimed at stabilizing the property market. Details regarding these adjustments will be disclosed on October 12, as announced by the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, and Postal Savings Bank of China. These changes are scheduled to be implemented by October 31, 2024.
These recent initiatives follow a meeting of the Political Bureau of the Communist Party of China Central Committee on Thursday, which stressed the importance of reversing the decline in the real estate market and restoring stability.
Jessica Kline for TROIB News
