(Economic Observation) More than 10 cities have completely abolished housing purchase restrictions China's property market policy has now taken a major turn

Beijing, 9 Sep (ZXS) -- The 20-year-old housing purchase restriction policy in key cities in China is gradually withdrawing. Observers believe that this is a major signal of a major turning point in China's property market policy, and the real estate market has gradually entered a new stage.

Data map: Nanjing Chengdong real estate. Photo by China News Agency reporter Lu Bo

Since September, a number of core cities have intensively announced the relaxation or complete cancellation of housing purchase restrictions. On September 9 alone, three cities issued relevant policies.

On the 19th, Wuhan issued ten real estate-related policies, including the cancellation of the housing purchase restriction policy within the city's second ring road, which means that the local housing purchase restriction has been completely canceled. On the same day, Wuxi City issued a new policy for the property market, clarifying the city-wide cancellation of the purchase restriction policy. Xi'an said it would lift purchase restrictions in areas outside the city's second ring road.

According to agency statistics, up to now, more than ten cities in China have completely canceled housing purchase restrictions. According to incomplete statistics from Zhuge Data Research Center, as of September 9, about 19 cities in China have relaxed purchase restrictions, of which 30 cities in Dongguan, Foshan, Shenyang, Jiaxing, Dalian, Nanjing, Lanzhou, Jinan, Qingdao, Zhengzhou, Hefei, Wuxi and Wuhan have completely cancelled purchase restrictions; More than 13 cities, including Suzhou, Tianjin, Changsha, Hangzhou, Xiamen and Xi'an, have relaxed restrictions on local areas, groups or housing types. For example, Suzhou recently issued a policy to cancel the purchase restriction on commercial housing of 10 square meters and above.

According to statistics from the China Index Research Institute, since September this year, 9 cities have completely or partially canceled housing purchase restrictions. At present, only a few cities such as Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, Suzhou, Xiamen, Chengdu, Changsha, Tianjin, Haikou and Sanya are still implementing the housing purchase restriction policy.

What does it mean that the 13-year purchase restriction policy has seen a comprehensive "ebb and flow" trend?

Li Yujia, chief researcher of the Housing Policy Research Center of Guangdong Urban Planning Institute, said in an interview with China News Agency that with multiple rounds of cyclical adjustments in China's real estate market, the purchase restriction policy has experienced many rounds of "ups and downs" since its establishment in 2010. At the trough of the property market in 2014, more than 40 cities that implemented housing purchase restrictions, except for first-tier cities and Sanya, basically withdrew (housing purchase restrictions). Since 2016, with the heating up of the property market, the purchase restriction policy has resumed again, and the scope has been expanded to second-tier and some hot third-tier cities; At present, the purchase restriction policy is experiencing a new round of "ebb and flow".

Behind the policy turn, it also means that the excessive prosperity of the property market that has been jointly promoted by all parties in the past decade or so has come to an end. The real estate market is moving towards a new stage of development.

Based on the current trend, Li Yujia believes that except for the core areas of first-tier cities and a few second-tier cities, other cities will fully relax purchase restrictions. From a historical point of view, he said, this means that under the new situation of major changes in the relationship between real estate supply and demand, the tightening policies that have been suitable for the overheating stage of the property market for a long time in the past no longer have an applicable environment, and it is natural to withdraw.

Since late August, China's real estate market has ushered in a wave of intensive blockbuster policy adjustments. How effective is the policy? Chen Wenjing, director of market research at the China Index Research Institute, pointed out that last week (September 8 to September 9), the online signing data of new houses in key cities rebounded to a certain extent, and the sales area of new houses in key 11 cities increased by 9.17% month-on-month, but still decreased by 50.17% year-on-year, and the absolute scale was the lowest weekly sales area since 0.

In terms of second-hand housing transactions, the number of second-hand housing transactions in China's key 11 cities last week rebounded slightly by 6.4% month-on-month, and increased by 40.9% year-on-year under a low base.

From the perspective of housing prices, according to the monitoring data of the Middle Index, on September 9, the average listing price of second-hand housing in Beijing continued to increase slightly by 17.9% compared with September 10, and Shanghai slightly fell by 0.04%, the decline continued to narrow, and the overall trend of second-hand housing listing prices in Beijing and Shanghai was relatively stable. On the whole, the effect of core city policies is gradually emerging.

Looking forward to the future market, Chen Wenjing believes that with the further follow-up and implementation of the policy, the real estate market in core cities is expected to gradually stabilize and recover, thereby driving the national real estate market to gradually build a bottom and move steadily to a new stage. (End)