Shanghai eases home-buying rules as China adds property support

[SHANGHAI] China’s financial hub of Shanghai eased home-buying rules in the latest attempt by authorities to contain the nation’s prolonged property crisis.

Eligible residents, including those from outside Shanghai, can now buy an unlimited number of homes in the outer suburbs, according to a statement on Monday (Aug 25). Non-residents who have paid pensions for three years can now purchase new homes in urban areas, instead of only being allowed to buy existing residences there.

China is seeking to bolster the domestic economy and offset the threat to exports from US tariffs. The housing slump has dragged on for four years with little sign of improvement, even after stimulus measures were unveiled last September.

Premier Li Qiang last week reiterated the need for action to stop the decline in the real estate market at a meeting of the State Council, or China’s cabinet. The central government flagged broad support during the National People’s Congress in March, when it vowed to “fully unleash” demand from buyers who need homes or seek to improve their housing conditions.

Shanghai’s move follows a similar easing by the capital city Beijing in early August, which also allowed eligible residents to buy an unlimited number of homes outside the fifth ring roads, widely considered suburban areas. BLOOMBERG