2 Chinese cities lift home buying curbs

TWO of China’s wealthiest cities said Thursday they would lift all restrictions on buying homes, joining a growing list of urban areas rolling back curbs as they look to prop up the faltering property market.

Many Chinese cities imposed restrictions and tough credit requirements on home purchases well over a decade ago in an effort to tamp down soaring prices and rampant speculation.

But they are now reversing those policies in a bid to stem an economic slump characterized by a debt crisis among developers, low demand and falling prices.

The eastern city of Hangzhou – home to 12.5 million people – said Thursday it had ditched all purchase restrictions “to promote the (market’s) stable and healthy development.”

“From the date of issuance ... those who buy lodgings within the bounds of this city will no longer have their purchasing qualifications reviewed,” it said.

Hangzhou, a major innovation hub home to tech giants such as Alibaba, is one of the most desirable and expensive places to buy property in China.

In a separate announcement, the northwestern city of Xi’an, which has a population of 13 million, said it had also canceled all such restrictions.

The announcements quickly racked up more than 230 million views on the social media site Weibo, where many users were doubtful the policy would make any difference.

“With Hangzhou’s house prices, what’s the point of canceling buying restrictions? I still can’t afford it,” wrote one commenter.

Bill Bishop, publisher of the influential Sinocism newsletter, called the move “a sign of desperation.”

“If this does not goose sales, there will be more trouble as prices will have to adjust downward a lot,” he wrote on the social media site X.

More than 20 cities have abolished home purchase restrictions since the beginning of last year, according to an AFP tally.

Chengdu in southwestern China said last month that it would no longer look at prospective buyers’ household registration documents, social security numbers and other conditions before greenlighting purchases.

Several of the biggest cities, including Beijing, Shanghai and Shenzhen, have partly lifted curbs but have resisted dumping them entirely.

Property and construction account for over a quarter of China’s gross domestic product, but the sector has been under unprecedented strain since 2020.