Chinese cities lift home buying restrictions to boost economy

Last week, a significant development took place in China as three major cities decided to lift restrictions on home buying. This move is part of the country's gradual reversal of its stringent measures in the property sector, aimed at stimulating its economy.In the northeastern province of Liaoning, both Dalian and Shenyang, which are among the most densely populated cities, independently announced the removal of limitations on the number of properties residents can purchase in most city areas. Furthermore, they introduced incentives for buyers and tax relief for sellers.Nanjing, the prosperous provincial capital of Jiangsu, also joined in by permitting individuals to purchase residential properties in four districts without requiring proof of eligibility, effectively eliminating its last remaining restrictions on home purchases.These actions follow a series of nationwide support measures implemented to bolster the property sector, including reduced mortgage rates for first-time homebuyers.It's worth noting that China's debt-laden property sector constitutes a significant portion, approximately one-quarter, of the country's economic activity. This sector had been in decline since 2021 when the government initiated measures to curtail developer debt accumulation.