Guangzhou vows property support

Guangzhou has become the latest tier-one Chinese city vowing to launch new policies to support the ailing property sector, following similar pledges by the governments of Beijing and Shenzhen

The Housing and Construction Bureau of Guangzhou said it would reveal measures soon to satisfy the demand for first-time buyers and those who seek better homes.

Several Chinese cities have vowed to support the real estate industry after China's top housing official urged financial regulators and lenders to strengthen efforts to revive the country's embattled property sector.

In a recent meeting with property developers and builders, Minister of Housing and Urban-Rural Development Ni Hong called for homebuyers who had paid off previous mortgages to be considered as first-time purchasers, according to Xinhua news agency. Up to now, many buyers in big cities who have a mortgage history but don't currently own a property are subject to higher down-payment rules.

The minister also called for relaxing down-payment rules and reducing mortgage rates for first-home purchasers. Currently, buyers of a second home are subject to more restrictive borrowing limits.

This also came after China's top leaders signaled in the politburo meeting earlier that they would ease property policies.