Shenzhen eases home buying to revive sales in China tech hub
Relaxation is the city’s latest attempt to boost demand
CHINA’S technology hub of Shenzhen has joined other major cities in easing home buying rules as authorities try to revive the beleaguered real estate market.
The southern city bordering Hong Kong loosened personal income tax and social-insurance payment requirements for home buyers in some districts, and said it would allow local families with two or more children to buy another home in some non-core districts, Xinhua Finance reported, citing a government statement.
The relaxation is the latest attempt to boost demand after Shenzhen in February lowered the home-buying threshold. People can now purchase homes immediately after they get resident permits known as “hukou,” rather than paying taxes for three years first.
China’s home prices plunged in March at an even faster pace than the previous month, extending a three-year decline and making property one of the biggest drags on economic growth.
Former real estate giant China Evergrande Group has received a liquidation order and Country Garden Holdings is at risk of one. Cash-flow troubles are emerging among more developers – including state-backed giants such as China Vanke Property investment slumped 9.5 per cent in the first quarter.
Shenzhen is home to companies including Huawei Technologies and Tencent Holdings. Housing sales in the city in the first two months of the year were about a third less than the peak for the same period of 2021, Bloomberg Intelligence wrote in a recent note.
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The nation’s housing minister said in early March that China still faces a “severe task” to stabilise the home market. Weeks later, Premier Li Qiang called for “systematic planning of relevant supportive policies” for property to stimulate demand. BLOOMBERG
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