HONG KONG: On Monday, September 30, shares of Chinese real estate developers increased sharply as first-tier cities relaxed restrictions on buying a home, shortly after the Politburo promised to stop the housing market’s downturn. Early trading saw more than 10% jumps on Hong Kong’s Hang Seng Mainland Properties Index and almost 9% in the mainland’s CSI 300 Real Estate index.
Guangzhou became the first top-tier city on Sunday to remove all limitations on buying a property, while Shenzhen and Shanghai announced plans to loosen limits on non-local purchasers’ housing purchases and reduce the required minimum down payment for first-time homebuyers to at least 15%.
According to Reuters on Friday, Shanghai and Shenzhen intended to remove significant remaining barriers in order to draw in purchasers.
In a separate statement on Sunday, China’s central bank stated that banks will be instructed to reduce mortgage rates on current home loans by October 31 as part of broad measures to assist the nation’s troubled real estate market as the economy slows.
Also Read:
