Chinese cities prop up housing market by easing policies on presales, subsidies and mortgages

Yiwu in Zhejiang and Harbin in Heilongjiang relax rules on presales and offer subsidies to young buyers to support housing market

Authorities at the city, provincial and central government levels come up with measures to boost the flagging market

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A residential project under construction in Yiwu, Zhejiang province. The city has eased presale rules, giving developers a much-needed boost. Photo: Xinhua

Published: 8:30am, 29 Oct 2021

Embattled Chinese property developers can heave a sigh of relief as authorities at the city, provincial and central government level take steps to ease policies to boost the flagging housing market.

Housing authorities in Yiwu in the eastern province of Zhejiang said last week that developers can restart presale activity as soon as they launch a residential project, reversing their decision in August, when developers had to apply for presale permits in tranches once every three months.

The regulator also said that developers only have to launch lucky draws when there is more than one buyer vying for each unit, simplifying the sales process. Two months ago, a lucky draw was a prerequisite for every project.

Yiwu’s about-turn on the real estate market came after top officials, from Vice-Premier Liu He to People’s Bank of China Governor Yi Gang, underscored the importance of a healthy property sector and pledged to support the stable development with consistent industry policies.

People’s Bank of China Governor Yi Gang said efforts must be undertaken to ensure the stable and healthy growth of the property market and protect consumer interest. Photo: EPA-EFE

Liu said at a financial forum in Beijing last Wednesday that reasonable capital needs of the property sector will be met to promote the healthy development of the property market.