In a significant move poised to invigorate the local real estate market, Hangzhou, a major city in East China, announced on Thursday the removal of all restrictions on new housing purchases. This policy shift opens the door for a broader range of buyers and is expected to stimulate economic growth in the region.
Under the new policy, individuals—regardless of their household registration status—can purchase new homes in Hangzhou without undergoing qualification reviews. Notably, non-residents who buy houses in the city will now be eligible to apply for Hukou, or permanent local residence. This status grants access to essential welfare benefits and public services in China, making Hangzhou an even more attractive destination for migrants and investors.
The policy also offers favorable mortgage terms. Individuals who do not own a home in the urban area where they wish to buy, or who own just one home that is listed for sale, can qualify as first-time homebuyers. This designation allows them to apply for lower mortgage rates on their new properties, easing financial barriers to entry into the housing market.
This development aligns with China’s broader real estate strategy. In its 2024 government work report, the central government called for an acceleration in adopting a new real estate development model. The focus is on adjusting to significant changes in supply and demand dynamics, emphasizing high quality, technological innovation, and enhanced services.
Earlier in March, Chinese Premier Li Qiang chaired a State Council executive meeting to discuss optimizing real estate policies. The meeting underscored the necessity of refining policies further, ensuring the timely delivery of housing projects, and enhancing the effectiveness of real estate financing coordination mechanisms.
Experts believe that Hangzhou’s policy relaxation could serve as a blueprint for other cities in China aiming to stimulate their real estate markets. The move is anticipated to not only boost housing sales but also attract talent and investment to the city, contributing to its socio-economic development.
Reference(s):
cgtn.com
