More than 30 provinces and cities changed their housing policies in the first 10 days of September.
Photo by Kuang Da
By LIU Chen
Cities across China have been dismantling housing restrictions since the end of August, mirroring the moves made by first-tier metropolises. From northern megacities like Shenyang and Jinan to Foshan and Dongguan in the south, it's much easier to buy a home.
More than 30 cities changed their housing policies in the first 10 days of September.
The driving force is supply and demand. At the height of the real-estate boom, the government persistently tried to cool the market down and avoid speculation. Now, with prices falling, authorities need to inject some heat.
A few cities, Hangzhou and Chengdu among them, continue to uphold restrictions, but these are the cities that are doing just fine. Lifting restrictions may lead to an unwelcome influx of buyers, causing a rapid escalation in prices and market turmoil.
The immediate and conspicuous effect is more house purchases. However, as the stimulus takes effect, volatility and uncertainty are also likely to rise. Buyers, prudent to the point of invisibility recently, are likely to maintain their prudent approach.