Two of China’s largest cities have eased housing purchase restrictions, following similar moves by other major urban centers, in efforts to shore up the troubled real estate industry, Invest-Gate reports.
Beijing and Shanghai announced new rules letting home buyers qualify for preferential first-home loans regardless of credit histories, just days after Guangzhou and Shenzhen implemented comparable relaxations.
Chinese experts say the premier city interventions are likely to trigger nationwide loosening, given property underpins about a quarter of the world’s second-largest economy.
Authorities aim to reinvigorate housing demand languishing amid debt and liquidity crises for overleveraged developers.
The measures could boost transactions as soon as September-October, traditionally the peak Chinese property purchasing season.
Last week, the top financial regulator also slashed down payments on first and subsequent residential buys while reducing mortgage rates on existing loans.
Analysts predict second-tier population centers may follow the first-class urban center lead, translating policy support into stabilization for the beleaguered yet pivotal real estate sector.