40 Local Governments in China Loosen Real Estate Policies in Market Stabilisation Bid

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Local governments around China have loosened up their real estate market restrictions, in a bid to expedite property consumption following calls for economic stabilisation measures from the Chinese central government.

A total of 41 local governments have unveiled various property market stabilisation measures in the first nine days of June, according to a report from Securities Journal.

This has included loosening of purchase restrictions by 4 local governments, the suspension of sales restrictions in one jurisdiction, home purchase subsidies in six areas, and adjustments to public fund loan policies by 27 authorities.

As of 9 June at least 16 province-level authorities in China have unveiled a raft of economic stabilisation policies that make special reference to measures targeting the real estate market.

These measures include reductions on down payment ratios, adjustments to the floor on interest rates for first home loans, increases to public fund loan quotas, the provision of home purchase subsidies, and adjustment to taxes on pre-owned home transactions.

Hebei, Jilin and Xinjiang have all reduced the floor for first home loan rates to 20 basis points beneath the loan prime rate (LPR), while Heilongjiang has called for similar adjustments.

The actions by local governments around China arrive following the release of a raft of economic stabilisation policies by the State Council on 23 May.