Henan Province in central China has seen a surge in housing transactions since the beginning of this month after the country rolled out a series of new policies to boost its struggling property market.
Implemented in late September by cities across China, these new policies include lowering the minimum down payment ratio for individuals' commercial housing loans, completely removing or further easing purchasing restrictions for homebuyers, and reducing interest rates on existing mortgage loans.
"These policies aim to revitalize the market and increase transactions in the property sector, making it easier for residents to replace their old homes with new ones," said Wu Wenchao, an associate researcher with the Institute of Economics at the Henan Academy of Social Sciences.
Not only have these policies benefited first-tier cities, such as Beijing, Shanghai and Guangzhou, but second-tier cities are also seeing noticeable impacts.
In Henan's provincial capital Zhengzhou City, over 3,700 new homes were sold in the first half of October, a 20.4-percent increase over the previous year.
"After the new policies were rolled out on Sept. 27, we quickly launched two more residential buildings for sale with an overwhelming demand on the first day. Now the new houses have almost sold out," said Shangguan Danzhi, marketing manager of the Zhengzhou Branch of the China Merchants Shekou Industrial Zone Holdings Co., a property developer.
"The new policies have boosted people's confidence in the market and the overall real estate sector," said Li Yan, marketing manager of the Zhongyuan Branch of the China Overseas Land and Investment, another property developer.
The central government's new policies also focus on reducing transaction fees for selling old homes to buy new ones, encouraging homeowners to improve their living conditions.
There are also financial measures in place to address liquidity issues for developers and ensure the completion of unfinished housing projects.
Homebuyers have welcomed the new policies, with many real estate agencies in Zhengzhou recently seeing a surge in customer flow.
"The government has issued many preferential policies, including lowering down payment ratios and reducing mortgage rates. I think it is a good opportunity to purchase homes now, so I come here today with my family," said a homebuyer named Zhao Bing.
Experts said that the long-term goal of these policies is to create a stable, balanced and more sustainable real estate market. As these measures take effect, they are expected to ease financial burdens for ordinary residents, as well as contribute to the long-term stability and health of the Chinese economy.
New housing policies boost market sentiment, transactions in Henan Province
