Nanjing Relaxed Restrictions on Second Home Purchases
Even when most if the Chinese cities have already relaxed restrictions on home purchases and created more measures to prop falling prices was expected as the government is looking for support to be the pillar of the economy. Nanjing has already abolished restrictions last Sunday which limits the number of homes that a resident can purchase.
This will bring the total 40 Chinese government out of 46 that was imposed home purchase limits and relaxed its curbs for this year. This only showed support for a slowing down of the property market which many of analysts say might poses s risk to the Chinese economy. The only remaining cities that are not budging from the restrictions are the largest namely Shanghai, Beijing, Shenzhen, Guangzhou and southern cities Sanya and Zhuhai were home prices are still high.
Analysts say that these large cities will likely to continue to keep their limits on the number of homes that a resident can purchase while smaller cities will be strengthening its support in the coming months. Local governments will be relaxing financial measures ranging from down payments and interest rates of home mortgages.
The further cooling down of the property market and increase in divergence of local economies in different cities has prompted the Central Government to allow regional governments to give more leeway and adjust property curd according to their own needs. But so far property controls so far gave little impact on lifting sales partly because several cities still haven’t eased on the requirements on home mortgages and interest rates for all second home buyers even when easy access to loans were offered.