More Cities Loosening Up Restrictions to Open Up the Property Market
Half of the cities in China are now relaxing their property controls as analysts say that more controls are to be expected in the future a move that suggests that the Central Government is now easing their grip on the property sector as the cooling down of the market is posing a threat to the economy. Recently Foshan a city in Guangdong Province has relaxed restrictions that limited the amount of homes a resident can purchases.
Following Foshan move, 28 regional governments from small to midsized Chinese cities are slowly opening relaxed home purchase restrictions, meaning that half of the country’s 46 local government are scrapping the limits on the number of homes a resident can buy as a bid to support economic growth. The last few years several attempts to relax restrictions on the housing market unilaterally has displeased the Central Government then tougher measures were quickly implemented. But analyst stated that the increase in the number of local government that are relaxing controls are a signal that the Central Government is now giving them the go signal to bolster the troublesome property market.
With the government tolerance for implementing a greater policy that was loosen in the recent months further eased purchasing restrictions which is expected to happen in smaller cities. In which the Central Government is long been waging a five year campaign in curbing housing prices and keep houses affordable. But home prices are still high which worries analyst that the country might have buckled in the pressure to safeguard the economy in the expense of calming down the housing market.