New property policies set to lift real estate market in first-tier cities

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THE STAR. 1ST AUGUST: Local housing authorities in some first-tier cities, including Beijing, Shenzhen and Guangzhou, will put new property policies in place, better meet people’s basic and upgraded demands for housing, promoting a stable and healthy development of the real estate market.

These announcements came after the Political Bureau of the Communist Party of China Central Committee held a meeting on July 24 to analyse the current economic situation and help boost the economy in the second half of the year.

According to the meeting, it is imperative to adjust and improve the related policies in a timely manner, make use of the targeted policy tools in different cities, in order to adapt to the changes in the relationship between supply and demand in China’s real estate market.

These responses will allow first-tier cities to implement the policies unveiled by the central government and the Housing and Urban-Rural Development Ministry, Securities Times reported.

This is also proof that some supporting policies previously launched in second and third-tier cities may be expanded into first-tier cities, the paper added.

Overall, China’s real estate sector has changed to a buyer’s market from a seller’s market, and corresponding regulation policies have changed from cooling the overheated market to a warming market.

The policies unveiled should be optimised, the paper said, adding it’s predictable that supporting policies will be unveiled soon in some first-tier cities.

As the bellwether of China’s real estate market, Beijing’s property regulation policies are among the harshest in the country.

For example, second-home purchases in the capital city demand a minimum down payment of 60% for ordinary homes and 80% for non-ordinary homes.