BEIJING: China's eastern metropolis of Hangzhou, among the country's most thriving cities, on Thursday said it will lift all home purchase restrictions to shore up its real estate market, raising the prospect of other cities following suit.
As of May 9, Hangzhou's government will no longer vet the eligibility of potential buyers, the city housing authority said in a notice.
Hangzhou is capital of the wealthy Zhejiang province and boasts some of China's most desirable and expensive real estate. That led local authorities to impose home purchase curbs to deter speculation.
Home demand has sagged across the country since 2021 as buyer sentiment weakened significantly, chilled by a debt crisis among property developers and a continued decline in prices.
Hangzhou is the first city to completely abolish purchase restrictions after a meeting of top Communist Party leaders in April called for measures to support the property sector, said analyst Yan Yuejin at E-house China Research and Development Institute.
The city's decision will be "very inspiring" for other cities that still have curbs on home purchases, Yan said.
The city of 12.5 million people is China's answer to Silicon Valley, being home to technology majors including Alibaba Group and NetEase. It has been a magnet for tech talent from all over China, further elevating housing demand.
The policy change is to meet that demand and promote the healthy development of the real estate market, the housing authority said.
Late last month, the southwestern city of Chengdu, home to 21.4 million residents, also eased home-buying limits. - Reuters