Shanghai’s Lin-gang eases curbs on home buying

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A view of the Lin-gang Special Zone Free Trade Pilot Zone in China (Shanghai). LIU GUOXING/FOR CHINA DAILY

Shanghai has joined major Chinese cities in partially easing restrictions on home purchases.

The move will benefit talented professionals in the Lin-gang special area and suggests more cities are fine-tuning their residential property policies to support rational demand, industry experts said Thursday.

Non-local talents who have worked in the Lin-gang Special Zone (Shanghai) Free Trade Pilot Zone for at least three months are now allowed to buy houses in this specific zone. The previous requirement was at least one year, the official WeChat account of the Ling-gang special zone administrative committee said on Tuesday.

Professionals working at 195 businesses for more than three months are now eligible to buy residential property in the region, and those working at another 29 businesses for six months are qualified to buy an apartment, the notice said.

Affected by the resurgence of COVID-19, only 433 new residential properties were traded in Lingang in March, a sharp drop from 2,051 units sold in January and 1,651 in February, said Shu Duan, senior analyst at the China Index Academy.

Housing supply in Lin-gang, which is located at the southeastern tip of Shanghai, will reach 120,000 units in the next five years, or about 30 percent of Shanghai’s total new housing supply, according to the plan. of the Lin-gang Special Zone for the 14th Five-Annual Plan Period (2021-25), Shu said.

The central government has made it clear that the real estate market should develop in a healthy way, form a virtuous circle and meet people’s rational living needs.

But the recent COVID-19 outbreak has weakened market expectations. It is therefore necessary for Lin-gang, which is neither considered the city center nor part of the central business district of Shanghai, to adjust its policies to restore the balance between supply and demand in the region. said Li Yujia, chief researcher at the provincial residential policy research center. from Guangdong.

“Shanghai’s residential real estate market is currently under increasing pressure due to COVID-19, and the easing of the policy for talented professionals will likely improve market expectations and boost confidence,” said Yan Yuejin, director of E-house China Research based in Shanghai. and Development Institution.

In recent months, a number of major cities, including Nanjing and Suzhou in Jiangsu Province, have changed their housing policies to promote rational home buying.

This month alone, at least 15 cities have eased their home buying regulations, according to Securities Times. These measures included easing purchase restrictions, lending limits and selling restrictions, support for provident fund lending and adjusting mortgage interest rates.

On Monday, Suzhou eased restrictions on sales and purchases. On Tuesday, Nanjing’s Lishui and Liuhe districts eased buying restrictions by allowing non-local residents to buy their first home without providing proof of social security.

On Wednesday, Huaibei, Anhui Province, announced that first-time home buyers and families will receive a maximum of 60,000 yuan in rewards at the city’s spring expo between April 30 and May 4. , reported Guandian.cn.

Li said he believed more outlying areas of cities would follow. But, while fine-tuning local policies, relevant authorities should anticipate wild market swings back and forth.

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