Affordable Manshions in China
Guangzhou, a major city in southern China, totally loosened its restrictions on home purchases for some individuals on today and announced plans to expand the supply of inexpensive housing as a means of bolstering the regional real estate market.
A notice from the southern city government states that properties with a floor area of more than 120 square meters (1,292 square feet) are not subject to housing acquisition limitations.
According to Wang Xiaoqiang, an analyst at Zhuge Real Estate Data Research Centre, the change allows anyone to purchase as many apartments of that size as they choose, regardless of whether they currently own one or not.
Guangzhou is the first Tier-1 city to loosen its purchase restriction policy significantly, this will help speed up the process of reducing the housing inventory and stimulate the property market
Wang said
China is facing a severe housing shortage as many indebted developers are unable to complete their projects, which is hurting one of the main drivers of economic growth and weakening the trust of buyers. The oversupply of homes in Guangzhou has contributed to the downward pressure on the market. Guangzhou’s housing de-stock cycle has reached 18.5 months in December, surpassing Shanghai’s 10 months.
According to a report by China Real Estate information Corp. in December, new home prices in Guangzhou declined year-over-year for the twelfth consecutive month in December. The government has then announced plans to allocate 10,000 affordable housing units and 100,000 affordable rental housing units, as well as rental subsidies for 18,000 households.
However, In recent months, Chinese leaders have taken a number of steps to support the country’s struggling real estate market, including providing developers with more access to cash, lowering home mortgage rates and relaxing rules on home purchases. Unfortunately, the market has yet to show any signs of levelling off, with sales remaining weak and yet another record number of developer defaults.
On Friday, China’s housing regulator said that cities have full autonomy in regulating and controlling real estate, and can adjust property policies to reflect local circumstances.
