Xiamen becomes latest tier-2 city in China to introduce measures to revive property market, state media says
- The tier-2 city in Fujian province has made it easier for individuals and families to own multiple homes while also relaxing resale restrictions
- Chinese regulators need to increase the pace of policy loosening to hasten the recovery of the housing sector, analyst says
Xiamen, a coastal city in China’s southeast Fujian province, has reportedly loosened property restrictions, joining a growing list of tier-2 cities aiming to spur homebuying demand and inject life into the moribund market.
Under the new policy, a Xiamen hukou holder, who is single or divorced and has one or no children, can buy a maximum of two homes versus only one home in the past. Families are allowed to buy a third home from up to two before.
Homeowners can also sell their property after two years of buying, instead of two years after obtaining their property ownership certificate. Homeowners usually have to wait between three and six months to receive their certificate, meaning the time limit has been cut by at least 18 months in most cases.
The new policy was implemented two days ago but it has not been officially announced, according to separate reports by the state-run newspaper Securities Times and Jiemian News, both of which cited staff from the Xiamen Municipal Bureau of Housing Security and Housing Administration.
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China’s authorities since November have intensified efforts to revive the property sector from its long crisis, including offering a series of supportive measures to developers to ensure supply.
Regulators are also slowly loosening curbs on the buying and reselling of homes implemented since 2017 to curb speculation in the country’s property sector.
Several dozen local governments have also implemented measures to spur home buying since then, including lowering mortgage rates or cutting loan rates for first-time buyers.
Xiamen’s relaxation of restrictions on home purchases and resales suggest that more tier-2 cities will continue with the trend of taking more supportive measures to buoy the property market, said Yan Yuejin, director of the Shanghai-based E-house China Research and Development Institution.
Yan said that many restrictions on home purchases and resales have not been lifted entirely, which means local governments are aware of the risks posed by speculation and are trying to prevent it while simultaneously supporting demand.
“Though the property market in China is gradually recovering this year, there is a need to speed up the pace of recovery,” Yan said.
