DeepDive: The Latest Policy Moves in the Property Market

Over the past few weeks, authorities in China have taken further measures aimed at stabilizing the property sector and encouraging more buyers to get back into the market. Our latest DeepDive looks at how cities that have taken similar steps since last year have performed so far and offers our view on how the latest steps could affect the market.

Over the past few weeks, authorities in China have taken further steps to stabilize the property sector and encourage buyers to get back into the market. Under the new policies, homebuyers qualify as first-time buyers if they do not have a home registered in their own, their spouse’s or their children’s name, regardless of whether they have fully repaid their mortgage. This is a marked shift from previous purchase restrictions, under which homeowners that have previously had a home and mortgage registered in their name were considered second-time buyers if they wanted to buy a new home, with some variation across cities and tier-one cities imposing the most restrictive requirements.