Shanghai, one of China's biggest cities, will relax homebuying curbs to spur demand in its property market, which had shown signs of resilience against a nationwide slump.
Adjustments to Shanghai's property policies, announced by the municipal housing authorities on Wednesday and effective from the next day, will grant more people eligibility to buy homes in areas close to the city center. They also include mortgage and tax incentives.
Families or individuals without local residential registration will be allowed to buy a home in the inner areas of the city after paying income taxes or social insurance contributions in Shanghai for at least one year, down from the previous three consecutive years.
People may become qualified for purchasing a second home in the inner city areas after paying income taxes or paying into the social insurance system for three consecutive years.
Under the adjusted policies, some households can take out more mortgages for their first homes in the city, and some homeowners will be exempted from paying personal housing property tax.
China's property market, once a key growth driver, has been in a downturn for more than four years, weighing on domestic demand and the overall economy.
Nationwide new home prices fell 0.4 percent in January compared with the previous month, extending a weak trend that has persisted since May 2023. Prices in Shanghai remained unchanged on month, after picking up 0.2 percent in December.
Shanghai had previously eased homebuying curbs in August last year.
Reuters
