China’s megacity Chongqing joins Dongguan, Foshan in easing homebuying restrictions to revive ‘pillar of the economy’

Families can now own more than one home provided one of them is rented out while non-locals can also enjoy the same mortgage policy as the locals

Policy comes after Vice-Premier Liu He said earlier this month that ‘the real estate sector is a pillar industry for the economy’ and new measures were planned

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China’s southwestern megacity of Chongqing has relaxed home ownership restrictions to spur home sales. Photo: Simon Song

Published: 8:00pm, 29 Dec 2022Updated: 8:37pm, 29 Dec 2022

The megacity of Chongqing has become the latest Chinese city to relax homebuying restrictions, as authorities pull out all the stops to revive a moribund market.

Families can now own more than one property if one of them is rented out on a long-term lease, the city’s housing authorities said on Wednesday. However, “only one home will be excluded for each household in principle” to calculate ownership of homes, a statement said.

Chinese immigrants living and working in Chongqing can also enjoy the same mortgage policy as locals when buying their first home in the city of more than 30 million people, according to the new policy.

“The policy in Chongqing increasing the quota for homebuyers will help to increase home-purchase demand,” said Yan Yuejin, a director at the Shanghai-based E-house China Research and Development Institution.

Residential buildings in Chongqing. The city has joined Dongguan and Foshan in lifting home ownership curbs. Photo: Bloomberg

The southwestern metropolis is the third mainland city this month to relax homebuying restrictions. On Monday, China’s hi-tech manufacturing hub of Dongguan in southern Guangdong province lifted a ban on individuals buying new homes in the last five areas of the city that were still subjected to restrictions. This came after the neighbouring city of Foshan eased rules on December 10.

The measures by these cities come as China’s Vice-Premier Liu He reiterated on December 15 that “the real estate sector is a pillar industry for the economy” and new measures were on the cards to support the sector.