Beijing
Several major Chinese cities have lifted restrictions on home buying as part of a broader effort to stimulate the country’s economy. Dalian and Shenyang, two populous cities in northeastern Liaoning province, have announced that they will no longer limit the number of properties residents can purchase in most parts of the city. They are also offering subsidies for buyers and tax relief for sellers. Nanjing, the capital of Jiangsu province, has similarly relaxed restrictions on home purchases in four districts, allowing people to buy flats without proof of eligibility.
These moves come as China looks to support its property sector, which has been struggling since 2021 when the government implemented measures to curb debt accumulation by developers. The property sector plays a significant role in China’s economy, accounting for about a quarter of the country’s economic activity. Lower mortgage rates for first-time homebuyers are among the nationwide support measures being introduced to boost the property market.
By easing restrictions and offering incentives, Chinese authorities aim to revitalize the property sector and stimulate economic growth. However, they must carefully manage the balance between supporting the sector and preventing speculative bubbles that could lead to financial instability.
